Michael Kinsley on Creative Capitalism
Bill Gates is a proponent of something called creative capitalism – he introduced it in an address at the 2008 World Economic Forum in Davos, Switzerland.
Here’s our attempt at a definition: philanthropy can’t solve all the great problems of society – hunger, homelessness; and government can’t do it all either. And that leaves a space for something else: a new kind of capitalism in which companies operate according to the profit motive, but also operate with the aim of reducing inequity.
On KUOW’s Weekday with Steve Scher, Time magazine’s Michael Kinsley and Clive Crook of The Atlantic talk about a number of aspect of this idea, including whether you can harness market forces to address the needs of the poor. It’s a debate that gets deep quickly, with the discussing the nature of capitalism, where pursuit of wealth meets the Smithian moral sentiments, the role of government regulation of companies, and the unintended consequences of trying to shape market forces. Is the CEO or board of a company following a mandate to create value for its shareholders, capable of policies that – at the same time – help alleviate societal problems? That’s a tough one, and while there are some companies that might be doing this, there are some who think there’s an inherent conflict between the pursuit of profit and the pursuit of the public good.
This is an absorbing discussion and the only problem we had with it was the lack of a really solid, well-formed definition of the concept of creative capitalism at the open of the show. We spent the first five minutes of the show trying to piece it together from the conversation and the Wikipedia definition. That aside, if you’re a little wonky like we are, you’ll find the hour flies by. Listen
Michael Kinsley has edited a new book that explores the concept: Creative Capitalism: A Conversation with Bill Gates, Warren Buffett, and Other Economic Leaders
Here’s the transcript of Bill Gates’ address at Davos.
