Interview: How Procter and Gamble Learned To Love YouTube

“Action is purposive conduct. It is not simply behavior, but behavior begot by judgments of value, aiming at a definite end and guided by ideas concerning the suitability or unsuitability of definite means. . . . It is conscious behavior. It is choosing. It is volition; it is a display of the will.” Ludwig von Mises

As a former employee of P&G I am always proud to learn from the future of one of the greatest companies on Earth.  P&G provides with hundreds of consumer goods to millions of human beings at competitive and wonderful prices.  Indeed, companies like P&G are the result of team working leaders who create a better future by giving irreplaceable experiences to its consumers.  In the following video, Melanie Healey (P&G Group President, North America) and Filippo Passerini (Group President, CIO, P&G) explain how success is about networked technology, big data analytics and 1-to-1 marketing.

As Passerini asserts, what we need right now is “business people that have passion for technology but (who don’t forget) that they are businesspeople”. Further, Healey elaborates on how global channels are currently working in global scale.  As Healy explains, they create plans that “deliver strategies faster, cheaper and better” in order to create business plans in order to fulfill the business needs.

Indeed, in a globalized world opportunities appear logarithmically while strengths are developed by giving always an added value for consumers.  Indeed, as philosophers like Ayn Rand and economist Ludwig von Mises so wonderfully elaborated as it is the philosophy of the entrepreneur what allows him to pursue successful projects.  What gives the entrepreneur the ability to succeed are market signals, which are necessary to determine what people might want and how well it was provided. Even the smartest person can’t learn if a teacher uses black chalk on a blackboard in a dark room. No entrepreneur can succeed in isolation.

Entrepreneurs and successful men with values like them are what we need in the world! People ready to create something better and work hard!

Free ebook: The Morality of Capitalism by Tom G. Palmer

Today I finished reading a great book titled “The Morality of Capitalism” written by Tom G. Palmer.

The book is the result of a project done by the US based think tank “Students for Liberty“. As explained by the think tank leaders, the book was written as a “new tool in the fight for liberty, a new book on The Morality of Capitalism, What Your Professors Won’t Tell You.”

About the book by John Mackey, CEO of Whole Foods

The book can be downloaded for free in the following website: full PDF of The Morality of Capitalism, What Your Professors Won’t Tell You or can be bought at only $0.99 in a Kindle format via Amazon.com

About The Book

“Love and friendship are the fruits of mutual benefit through cooperation, whether in small or in large groups.  Without such mutual benefit, society would simply be impossible.” – Tom G. Palmer

The book combines the writings of various philosophers, economists, Nobel Prize winners, and entrepreneurs to make the case that not only do “markets deliver the goods” as Vernon Smith says, but that a true free market system is a prerequisite for a just, prosperous, and cooperative society.

More resources like videos, websites, and similar works in Arabic, Chinese, French, and many other languages can be found in this link.

Inequality in India

By 2011 the BRIC economies had some of the highest rates of income inequality adjusted to the Human Development Index among developing nations.  At the same time, the BRIC countries had consistently had the highest GNP growth versus the previous 10 years among developing nations.  How is it that there is not a parallel growth of the Human Development of its citizens?  The answer and one of the biggest challenges for the BRIC countries is the fact that a large amount of the GNP is distributed among small elites that control their market economies.

Economists and investors such as O’Neill, Krugman and others largely emphasize the expected growth of the BRIC economies as indicators of where to invest their money.  Unfortunately, they have not paid the same interest to what many other economists consider important: the human development of the people.  Fortunately, there are still some economists who since the decade of 1970 paid a lot of attention to the issues of freedom and equality.  Economists leaded by Milton Friedman, the Economics Nobel Prize of 1976, argued that economic policies should be focused in the freedom of its citizens as a primary value.  To them, stressing equality per se could lead to economic inefficiency as well as it would put in risk Freedom itself.  However, the same economist argued that it was necessary for developing economies that the government took a central role in poverty alleviation in order to keep the pace with the economic growth of its economies.  Unfortunately, this poverty alleviation is not being done in the BRIC countries and the economic difference between the poorest and the richest continues to grow. Since the 60s, a large group of economists emphasized the negative effects of not paying attention to a free and equal development in emerging markets; economists like Friedman and Hayek wrote a lot in this regard and even recently Elinor Ostrom’s ideas, who won the Nobel Prize in Economics in 2009, are still not listened by those who have forgotten the importance of good governance economic policies.

India is the country in which this income inequality versus human development is more pronounced.  Currently, India occupies the position #93 with an IHDI of 0.392 and the country has descended in the rank many positions since the last decade.  Inequality in the earnings among Indians has doubled over the last two decades, making it one of the worst performers among developing economies.  Why? This is again the result of the failed attempts by the Indian government to combat corruption, bad administration and under-payments and also of the unawareness of foreign investors.

The fact that foreign investors have no interest in securing the welfare of the Indian people is a problem.  To them, the investment opportunities of this specific BRIC country are of value until they find a better economy to move their money to.  However, the real stakeholders are not the foreign investors but the Indian Government and its groups of interest who should aim to secure the welfare of all of its citizens now that they have a chance.  While the growth of this economies will continue the effect it will have in such unequal societies will result in some of the worst rates of poverty and hunger ever seen in history. By 2025 India will be the most populous country in the world but also, it will have 268 million people (20.3%) living still with less than US$1.25 a day as reported by economists in the World Bank. The Indian government should go aligned with the current trade liberalization in order to support higher productivity in the private sector and to exploit its comparative advantage of having a labor-intensive industry to foster the production of goods and services.

On how Islam violates individual rights

Wealth is produced for the purpose of creating a monetary profit (a moral value) that will enable a man to pursue other values.  The process of creating wealth is the result of a man’s reason put in practice.  This process of acting requires that man be free in order to pursue his rational and objective values and to make use of them as he pleases.  The previous process I have mentioned is much more complex to understand and requires pages of explanation. For anyone interested in learning how man’s mind works I recommend you to check the writings of Ludwig von Mises and Ayn Rand as a starting point.

There are many philosophies of life and religions that are in opposition to individual freedom because of the religious dogma from which they are rooted.  These people’s philosophies and religions have codes of values that deny an individual’s right to their life and the pursue of their happiness.  Religions are anti-life since they proclaim rules believed by faith that require man to suffer, sacrifice and do irrational actions in the aim of fulfilling their dogma. The religion that strikes me the most is Islam because it is not only a religious creed but also a political mean of organizing human life through the Sharia and Fiqh.

Ellaborating on how Islam is anti-life would take also dozens of pages with explanations and examples of how it does so.  A great reference to start learning is the book “Winning the Unwinnable War: America’s Self-Crippled Response to Islamic Totalitarianism” which clear examples on how Islam and the practice of Sharia and the Fiqh violate individual rights, disincentive man’s creativity to pursue happiness and create wealth. Also, I recommend you to check the following blog post “Islam Violates our human rights” which enumerates very shortly and clearly good examples of violations done by Islamics,

  • Violation of Article 23 (1) and 26 (1) of the UDHR Article 23 (1) of theUniversal Declaration of Human Rights states: Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment. Article 26 (1) states: Everyone has the right to education.

But in Afghanistan, a muslim country, girls are not allowed education. Girls schools are banned and those caught running these schools, can be punished by law.

This continued for about 5 years, during the reign of the Taliban, the oppressive Islamic extremists, who were finally eliminated by theAmericans. (Thank you, America)

  • Violation of Article 19 of the UDHR Article 19 of the Universal Declaration of Human Rights states: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

Maldives, Pakistan, Afghanistan and other muslim countries do not allow freedom of speech, regarding criticism on Mohammed, the prophet of Islam. This has taken the shape of a Blasphemy Law, where any person who speaks negatively about Mohammed, can be given death sentence or life imprisonment and/or fine.

An example of this is the recent death sentence given to Dr. Younus Shiekh for correctly pointing out that the Prophet Mohammed did not become Muslim until the age of 40 (which was when he received his first revelation) and that his parents were non-Muslims (as they died before Islam was proposed by the Prophet).

  • Violation of Article 18 of the UDHR Article 18 of the Universal Declaration of Human Rights states: Everyone has the right to freedom of thought, conscience and religion; this right includes freedom to change his religion or belief, and freedom, either alone or in community with others and in public or private, to manifest his religion or belief in teaching, practice, worship and observance.

But the Quran says that:

Any religion except Islam will not be accepted

Quran 3.85 : If anyone desires a religion other than Islam, never will it be accepted of him; and in the Hereafter He will be in the ranks of those who have lost.

This is also mentioned in Violation 5, where those who dont believe in Allah, will be tortured severely.

  • In Iran, and Afghanistan, brutal punishments are give for extra-marital sex. Stoning to death was ordered by Mohammed, and is still used in Iran. This is a very cruel brutal punishment and its only aim is to inflict maximum pain on the individual. Muslims in Afghanistan and Iran can be flogged for consuming alcohol, slandering or for adultery while they are not married.

Flogging is ordered by the Quran:

And those who accuse free women and bring not for witnesses, flog them with eighty stripes.”59 For the adulterer, God says :”The adulteress and the adulterer, flog each of them with a hundred stripes.” 60 s

These punishments are condemned by the International Community

Islam also orders cutting of hands and feet :

Quran 5.38 As to the thief, Male or female, cut off his or her hands: a punishment by way of example, from Allah, for their crime: and Allah is Exalted in power.

Read here the complete post on how Islam violates rights…

Thanksgiving Greatest Quotes

Thanksgiving is a typically American holiday. In spite of its religious form (giving thanks to God for a good harvest), its essential, secular meaning is a celebration of successful production. It is a producers’ holiday. The lavish meal is a symbol of the fact that abundant consumption is the result and reward of production. Abundance is (or was and ought to be) America’s pride—just as it is the pride of American parents that their children need never know starvation. Ayn Rand

Thanksgiving is the perfect time to recognize what we are truly grateful for, to appreciate and celebrate the fruits of our labor: our wealth, health, relationships and material things–all the values we most selfishly cherish. Debi Ghate

Corporatism (a.k.a. Neo-Patrimonialism) is not Capitalism

JP Morgan Chase Tower in Dallas, Texas.

Right now, there is a lot of talk about the evils of “capitalism”.  But it is not really accurate to say that we live in a capitalist system.  Rather, what we have in the United States today, and what most of the world is living under, is much more accurately described as “corporatism”.  Under corporatism, most wealth and power is concentrated in the hands of giant corporations and big government is used as a tool by these corporations to consolidate wealth and power even further.  In a corporatist system, the wealth and power of individuals and small businesses is dwarfed by the overwhelming dominance of the corporations.  Eventually, the corporations end up owning almost everything and they end up dominating nearly every aspect of society.  As you will see below, this very accurately describes the United States of America today.  Corporatism is killing this country, and it is not what our founding fathers intended.

The following is the definition of “corporatism” from the Merriam-Webster dictionary….

the organization of a society into industrial and professional corporations serving as organs of political representation and exercising control over persons and activities within their jurisdiction

Corporatism is actually not too different from socialism or communism.  They are all “collectivist” economic systems.  Under corporatism, wealth and power are even more highly concentrated than they are under socialism or communism, and the truth is that none of them are “egalitarian” economic systems.  Under all collectivist systems, a small elite almost always enjoys most of the benefits while most of the rest of the population suffers.

The Occupy Wall Street protesters realize that our economic system is fundamentally unjust in many ways, but the problem is that most of them want to trade one form of collectivism for another.

But our founding fathers never intended for us to have a collectivist system.

Instead, they intended for us to enjoy a capitalist system where true competition and the free enterprise system would allow individuals and small businesses to thrive.

In an article that was posted earlier this year on Addicting Info, Stephen D. Foster Jr. detailed how our founding fathers actually felt about corporations….

The East India Company was the largest corporation of its day and its dominance of trade angered the colonists so much, that they dumped the tea products it had on a ship into Boston Harbor which today is universally known as the Boston Tea Party. At the time, in Britain, large corporations funded elections generously and its stock was owned by nearly everyone in parliament. The founding fathers did not think much of these corporations that had great wealth and great influence in government. And that is precisely why they put restrictions upon them after the government was organized under the Constitution.

After the nation’s founding, corporations were granted charters by the state as they are today. Unlike today, however, corporations were only permitted to exist 20 or 30 years and could only deal in one commodity, could not hold stock in other companies, and their property holdings were limited to what they needed to accomplish their business goals. And perhaps the most important facet of all this is that most states in the early days of the nation had laws on the books that made any political contribution by corporations a criminal offense.

Our founding fathers would have never approved of any form of collectivism.  They understood that all great concentrations of wealth and power represent a significant threat to the freedoms and liberties of average citizens.

Are you not convinced that we live in a corporatist system?

Well, keep reading.

The following are 7 things about the monolithic predator corporations that dominate our economy that every American should know….

#1 Corporations not only completely dominate the U.S. economy, they also completely dominate the global economy as well.  A newly released University of Zurich study examined more than 43,000 major multinational corporations.  The study discovered a vast web of interlocking ownerships that is controlled by a “core” of 1,318 giant corporations.

But that “core” itself is controlled by a “super-entity” of 147 monolithic corporations that are very, very tightly knit.  As a recent article in NewScientist noted, these 147 corporations control approximately 40 percent of all the wealth in the entire network….

When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 percent of the total wealth in the network. “In effect, less than 1 percent of the companies were able to control 40 percent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

Unsurprisingly, the “super-entity” of 147 corporations is dominated by international banks and large financial institutions.  For example, JP Morgan Chase, Goldman Sachs, Morgan Stanley and Bank of America are all in the top 25.

#2 This dominance of the global economy by corporations has allowed global wealth to become concentrated to a very frightening degree.

According to Credit Suisse, those with a household net worth of a million dollars or more control 38.5% of all the wealth in the world.  Last year, that figure was at 35.6%.  As you can see, it is rapidly moving in the wrong direction.

For a group of people that represents less than 0.5% of the global population to control almost 40 percent of all the wealth is insane.

The dominance of corporations is also one of the primary reasons why we are witnessing income inequality grow so rapidly in the United States.  The following comes from a recent article in the Los Angeles Times….

An economic snapshot from the Economic Policy Institute shows that inflation-adjusted incomes of the top 1% of households increased 224% from 1979 to 2007, while incomes for the bottom 90% grew just 5% in the same time period. Those in the top 0.1% of income fared even better, with incomes growing 390% over that time period.

You can see a chart that displays these shocking numbers right here.

#3 Since wealth has become concentrated in very few hands, that means that there are a whole lot of poor people out there.

At a time when technology should be making it possible to lift standards of living all over the globe, poverty just continues to spread.  According to the same Credit Suisse study referenced above, the bottom two-thirds of the global population controls just 3.3% of all the wealth.

Not only that, more than 3 billion people currently live on less than 2 dollar a day.

While the ultra-wealthy live the high life, unimaginable tragedies play out all over the globe every single day.  Every 3.6 seconds someone starves to death and three-quarters of them are children under the age of 5.

#4 Giant corporations have become so dominant that it has become very hard for small businesses to compete and survive in the United States.

Today, even though our population is increasing, the number of small businesses continues to decrease.

According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.

This is the exact opposite of what should be happening under a capitalist system.

#5 Big corporations completely dominate the media.  Almost all of the news that you get and almost all of the entertainment that you enjoy is fed to you by giant corporations.

Back in 1983, somewhere around 50 corporations controlled the vast majority of all news media in the United States.

Today, control of the news media is concentrated in the hands of just six incredibly powerful media corporations.

#6 Big corporations completely dominate our financial system.  Yes, there are hundreds of choices in the financial world, but just a handful control the vast majority of the assets.

Back in 2002, the top 10 banks controlled 55 percent of all U.S. banking assets.  Today, the top 10 banks control 77 percent of all U.S. banking assets.

The “too big to fail” banks just keep getting more and more powerful.  For example, the “big six” U.S. banks (Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo) now possess assets equivalent to approximately 60 percent of America’s gross national product.

#7 Big corporations completely dominate our political system.  Because they have so much wealth and power, corporations can exert an overwhelming amount of influence over our elections.  Studies have shown that in federal elections the candidate that raises the most money wins about 90 percent of the time.

Politics in America is not about winning over hearts and minds.

It is about who can raise the most cash.

Sometimes this truth leaks out a bit in the mainstream media.  For example, during a recent show on MSNBC, Dylan Ratigan made the following statement….

“The biggest contributor to Barack Obama’s presidential campaign is Goldman Sachs. The primary activities of this president relative to banking have been to protect the most lucrative aspect of that business, which is the dark market for credit default swaps and the like. That has been the explicit agenda of his Treasury Secretary. This president is advocating trade agreements that allow enhanced bank secrecy in Panama, enhanced murdering of union members in Colombia, and the refunding of North Korean slaves.”

Later on, Ratigan followed up by accusing both political parties of working for the bad guys….

“But I guess where I take issue is, this president is working for the bad guys. The Democrats are working for the bad guys. So are the Republicans. The Democrats get away with it by saying, ‘Look at how crazy the Republicans are; at the Democrats pretend to care about people.’ BUT THE FACT IS THE 2-PARTY POLITICAL SYSTEM IS UTTERLY BOGUS.”

Wow – nobody is actually supposed to say that on television.

Today, most of our politicians are bought, and most of them actively help the monolithic predator corporations accumulate even more wealth and even more power.

In fact, as I wrote about recently, the big Wall Street banks are already trying to buy the election in 2012.

Fortunately, it looks like the American people are starting to wake up.  According to one recent survey, only 23 percent of all Americans now trust the financial system, and 60 percent of all Americans are either “angry” or “very angry” about the economy.

Unfortunately, many of them are joining protest movements such as Occupy Wall Street which are calling for one form of collectivism to replace another.

The American people are being given a false choice.

We don’t have to choose between corporatism and socialism.

We don’t have to choose between big corporations and big government.

Our founding fathers actually intended for corporations and government to both be greatly limited.

The following is a famous quote from Thomas Jefferson….

“I hope that we shall crush in its birth the aristocracy of our monied corporations, which dare already to challenge our government to a trial of strength, and bid defiance to the laws of our country.”

Unfortunately, things did not turn out how Jefferson wanted.  Instead of us controlling the corporations, they now control us.

This next quote is from John Adams….

“Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good.”

But who dominates our economy today?

The big banks.

Perhaps we should have listened to founding fathers such as John Adams.

Lastly, here is another quote from Thomas Jefferson….

“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

How prescient was that quote?

Last year, over a million American families were booted out of their homes by the big banks.  The financial institutions actually now have more total equity in our homes than we do.

Unemployment is rampant, but corporate profits are soaring.  The number of Americans on food stamps has increased by more than 70 percent since 2007, and yet the incomes of those at the top of the food chain continue to increase.

We need a system that allows all Americans to start small businesses, compete fairly and have a chance at success.

Instead, what we have is a corporatist system where the big corporations have most of the wealth, most of the power and most of the advantages.

We need to get the American people to understand that corporatism is not capitalism.

Corporatism is a collectivist system that allows the elite to accumulate gigantic amounts of wealth and power.

The answer to such a system is not to go to a different collectivist system.

Rather, we need to return as much power as possible to individuals and small businesses.

Our founding fathers intended for us to live in a country where power was highly decentralized.

Why didn’t we listen to them?

Source of the article: Corporatism Is Not Capitalism: 7 Things About The Monolithic Predator Corporations That Dominate Our Economy That Every American Should Know