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Dear Editor:
Mr. Adler’s column, Centralized corporate, state power is antithetical to human liberty, is insightful and hits the mark exactly.
As a longtime observer of the World Economic Forum, I share his concern. Stakeholder Capitalism has a clear socialistic authoritative genesis. People with a desire to be informed should carefully read the statements from WEF Founder and Executive Chairman Klaus Schwab.
With Stakeholder Capitalism the question has to be asked: Who really runs the business? By using an actual business as an example, I believe Mr. Adler was simply trying to make the point that a business’s responsibility is to provide a return for the owners/investors without whose invested capital they wouldn’t exist. Is it not obvious that when a small business borrows capital through the SBA or directly from a bank that capital must be paid back with interest that comes from the profits of the business? Of course, a prudent business has a responsibility to their employees and customers. But these decisions should be the prerogative of the business, its managers and directors, of what they believe they can afford, not a third regulatory party.
As this is all in the early stages, adoption of Stakeholder Capitalism over Shareholder Capitalism should be concerning to every person with a pension fund or retirement account. It’s tempting to look at this as just a rebranding of Socialism under the WEF-inspired title of the Great Reset. What’s really dangerous about the Great Reset is the transformation of the capitalist economy.
Mr. Adler is correct, Stakeholder Capitalism is not defined. I believe purposely it is whatever politicians, their special interest groups, or regulators want it to be. This is a dangerous new way of government picking winners and losers and has started with mandatory reporting standards on sustainability. This is the first step toward screening and excluding politically incorrect industries such as oil and gas from investment portfolios or their ability to borrow operating capital. Some people naively don’t care about that industry, but this won’t stop with the energy industry! In his column Mr. Adler discusses other industries which will certainly fall victim to this pernicious new required process.
Small businesses will not escape this regulatory burden for long. Historically over 80 percent of new job growth has come from small business growth. You don’t need a business degree to understand the cost of compliance will certainly impede new business formation. Mr. Adler correctly notes: “Key proponents of the stakeholder theory include Elizabeth Warren and Bernie Sanders.” Other Progressive Democrats have also expressed support.
It should be alarming that the United States has dropped again on the 2022 Global Index of Economic Freedom down 2.7 points to rank 25th. I believe we need more people in Congress who “walk the talk” of economic freedom!
George Hodgson
Noblesville