More capitalism leads to less discrimination

Discrimination is actually less pervasive in more competitive industries

More capitalism leads to less discriminationOne of the favourite myths peddled by proponents of government control is that under the free-market system discrimination is rife and leads to unfair outcomes for minorities, women, and other groups. Thus, they say, we need government regulation to correct this unfairness and equalize outcomes. The myth persists despite having been repeatedly debunked over decades,…

Time for corporate Canada to abandon immoral capitalism

We have a major opportunity to reframe the roles and responsibilities of corporate stewardship

Time for corporate Canada to abandon immoral capitalismIn 1970, Novel laureate Milton Friedman proposed that an enterprise’s sole responsibility was to shareholders by maximizing profits: “the social mission of business is making profits, period, with other social goals best left to politics.” Corporate duty to maximize shareholder value, or shareholder primacy, has emerged as the dominant principle for free-market capitalism. This capitalist…

To share wealth you first have to create it

MacKenzie Scott's fuzzy criticisms of capitalism

To share wealth you first have to create itBy Bradley Doucet and Miguel Ouellette Montreal Economic Institute Allow us to join in the chorus of praise for the charitable giving of MacKenzie Scott, the ex-wife of Amazon founder Jeff Bezos, who announced last month that she had given away another $2,739,000,000 to 286 organizations. Private philanthropy is part of what makes the world…

The benefits from Big Pharma more obvious than ever

Why are we biting the hand that saved us?

The benefits from Big Pharma more obvious than everFor some people, no good deed deserves to be rewarded – at least not by making a profit, which they treat as if it were a dirty word. Even saving millions of lives, as pharmaceutical companies have undoubtedly done by delivering safe and effective COVID-19 vaccines to market in record time, is no excuse for…

Let charities care for the needy in society

Governments inevitably make a mess of social welfare programs, wasting money, discouraging work and encouraging dependence

Let charities care for the needy in societyLong before the COVID-19 recession, the generosity of Canadians, measured by charitable donations, was already steadily falling. From 2008 to 2018, the percentage of tax-filers donating to charity fell from 24.1 per cent to 19.4 per cent. And the percentage of aggregate income donated to charity fell from 0.62 per cent to 0.54 per cent.…

Pandemic exposes weaknesses of government intervention

The response of governments was heavy-handed, lead-footed, wrong-headed and inept

Pandemic exposes weaknesses of government intervention2020 forever will be associated with the coronavirus sweeping Canada and the world. However, its impact on the economy was much greater than on our health. Far fewer people were stricken by the virus than the initial apocalyptic warnings from health care experts, while its impact on incomes, jobs and government deficits was larger and…

What happens when capitalism lacks a soul?

Corporations have created a structure that’s unsustainable on political, economic, environmental and even spiritual levels

What happens when capitalism lacks a soul?In recent decades across the globe, the super rich have been getting richer while the middle class shrinks. This is a danger not only to our economy but to democracy itself. Unfortunately, while millions of people have lost their livelihoods during the COVID-19 pandemic, the richest of the super rich have seen their assets balloon.…

Investing in human capital will pay huge dividends

Investing in human capital will pay huge dividendsHuman capital enables us to develop or make use of all other forms of capital. There are several kinds of capital. Mentioned most often are investments in buildings, machinery, equipment and infrastructure that enable us to be productive, and the financial assets that represent them. Natural capital is now getting more attention – that’s the…

Thank capitalism for your basic supplies in time of crisis

COVID-19 has meant some shortages at grocery stores. But overall, the supply chains developed over decades fill our needs

Thank capitalism for your basic supplies in time of crisisEven as COVID-19 has put much of the economy into shutdown and caused a run at grocery stores on some staples, most of us remain generally well-supplied with food. That’s something to be thankful for. It’s one of the significant wonders of the modern economic system that most people, very few of whom are directly…

Why social engineering and business shouldn’t mix

Firms can hardly thrive without compensating employees well, maintaining good relations with suppliers and being environmentally friendly

Why social engineering and business shouldn’t mixBy Paz Gomez Research Associate Frontier Centre for Public Policy The Trojan horse of social engineers has crossed the gates. At the latest World Economic Forum in Switzerland, the Davos Manifesto 2020 replaced the original from 1973. The new one lays down a company’s duties towards “stakeholders” rather than shareholders. This virtue signalling, which gives…

Where does the economy go after COVID-19?

We need to fundamentally change how capitalism works, in part by recognizing intangible assets like human and natural capital

Where does the economy go after COVID-19?The COVID-19 crisis is less than a month old and as necessary steps are taken to mitigate the pandemic, another larger and much more dangerous crisis is looming. Should the medical shutdown extend into the early summer, what might the economic consequences be? The answer is a lot of short-term pain with a distant possibility…

Is capitalism a cure for the climate crisis?

Life in an air-conditioned bunker, drinking vodka sodas and binge-watching Netflix may not be enough to stimulate the privileged climate-change survivors

Is capitalism a cure for the climate crisis?The actions of the Donald Trump presidency and the many global populist governments that follow suit (Brazil, the Philippines, and arguably Saudi Arabia and even Australia) reveal a line of thought about the climate crisis: it doesn’t really exist. Climate change is basically viewed as an externality determined by God, nature or whimsy. When it’s…

Combining bad Marxist theory and millennial laziness

Total automation, capitalist or communist, removes the very purpose of human existence

Combining bad Marxist theory and millennial lazinessSince the publication of Fully Automated Luxury Communism in 2018, a manifesto by Aaron Bastani, millennials across Canada and the United States have embraced a new Marxism for the 21st century. This new socialism is based on the concept of a post-scarcity economy that embraces automation, the reduction of working hours and a universal income.…

How to fix toxic shareholder capitalism

Too many valuable assets never get identified, measured or capitalized on a company’s financial statement. Those include workforce and corporate reputation

How to fix toxic shareholder capitalismI remember it well: the CEO of the company stood before the cheery assembly of wide-eyed employees brandishing a newly-released report and declaring, “This is the start of our next great journey together, building a more sustainable company and a better, more sustainable, future.” I then followed the CEO and his team to their top…

Can ethics save capitalism?

The rise of angry populism has illustrated one critical truth – CEOs and other business leaders need to align their actions with the greater good

Can ethics save capitalism?The most common criticism of capitalism is that it has no history of working for the benefit of society as a whole. You may be surprised to learn that major schools of thought believe this is a virtue, not a fault of capitalism. If you had asked the late Prof. Milton Friedman, former head of…
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