Essay on Creative Capitalism - 923 Words

For this extra credit assignment, we were assigned an article by Bill Gates about â€Å"creative† capitalism. Bill Gates is one of the most well-known and wealthy men on Earth, earning his fortune from software like Microsoft Office and Windows. At the time this article was written, neither was sold at prices below $100. But this article is not about the capitalism that Bill Gates’ company has used and which he gained his fortune from. No, today Bill Gates is telling us about his idea of creative capitalism. The thesis of the article is that we need to change our economy to become a more creative capitalistic system. (As an aside, what makes this idea creative? Welfare capitalism would be much more descriptive. A company’s creativity has†¦show more content†¦I think that Walmart is a great example of creative capitalism, and I wonder why Gates didn’t include it in his article? The Walmart effect will always be a significant side effect of creative capitalism. In Gates’ world, firms will be producing much more of a product, to compensate for the huge drop in prices. They will have to cut prices, leading to a huge growth in low wage labor like sweat shops. This will certainly create jobs, but at the price of worker health. A worst case scenario is that we end up with massive amounts of workers working to produce the products that they will all share. A system that looks a lot like a communist system, with power held by major companies (like Bill Gates’). Cleary there are things that Bill Gates did not think about in his creative capitalism system, like labor, and how much it costs to produce a physical product (which a software company like Microsoft does very little of). Bill Gates proposes that many companies will want to help people purely from the benefits they will get from helping them. I think that this is another flawed argument. There is a reason that now, almost 2 years since this article was written, n othing has changed, and has probably only gotten worse. Large companies have little incentive to undertake the changes that creative capitalism demands. Stockholders demand profits, which companies can barely makeShow MoreRelatedUnderstanding Creative Capitalism And The Free Market2100 Words   |  9 PagesModule 5 Understanding Creative Capitalism According to http://financial-dictionary.thefreedictionary.com/Free-market+capitalism, free market capitalism is a system of economics that minimizes government intervention and maximizes the role of the market. According to the theory of the free market, rational economic actors acting in their own self-interest deal with information and price goods and services the most efficiently. 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