How we confused the role of Government and Business

“We have come to rely upon capitalism for justice and the government for economic stimulation, precisely the opposite of what reason would suggest. Capitalism does not produce justice, any more than knife fights do. It produces winners and energy and growth. It is the job of government to channel that energy and growth into socially useful avenues, without stifling what it seeks to channel. That’s the basic problem of our form of government: how to achieve a balance between economic vitality and justice. It is a problem that we increasingly ignore.”

This quote is from journalist Donald Kaul way back in 1990. It’s only got worse since then.

This is what is wrong with our current form of Government. We expect them to create and protect our jobs, and guarantee income. While we then expect employers and the capitalist system to take on social positions of human protection. This is a very dangerous reversal of what should be.

A simple example in the startup sphere would be for Government to allow equity crowd funding on line in Australia. And let the market do the growing from there.

It’s another great reminder that we need to rely on ourselves economically, and push the Government to protect and provide social platforms. The regulatory and commercial environment we end up with is always a direct result of what we accept as a populace.

You should totally read my book – The Great Fragmentation.