Philip Kotler is widely acknowledged as the father of modern marketing and the world’s foremost expert on strategic marketing. He was voted the first Leader in Marketing Thought by the American Marketing Association and named The Founder of Modern Marketing Management in the Handbook of Management Thinking.
So why would this marketing guru write a book on capitalism? Here are his reasons in his own words:
First, I want to understand it myself.
Second, I believe capitalism is better than any other system.
Third, I want to examine and propose solutions to each of the fourteen shortcomings that would help make capitalism perform better and benefit more people.
Fourth, many readers want a shorter book on capitalism to get their thinking started.
Fifth, I believe that my background provides an opportunity to develop some special insights into the workings of capitalism.
So what are these fourteen shortcomings that Kotler refers to? Capitalism –
- Proposes little or no solution to persisting poverty.
- Generates a growing level of income and wealth inequality.
- Fails to pay a living wage to billions of workers.
- May not provide enough human jobs in the face of growing automation.
- Doesn’t charge businesses with the full social costs of their activities.
- Exploits the environment and natural resources in the absence of regulation.
- Creates business cycles and economic instability.
- Emphasizes individualism and self-interest at the expense of community and the commons.
- Encourages high consumer debt and leads to a growing financially-driven rather than producer-driven economy,
- Lets politicians and business interests collaborate to subvert the economic interests of the majority of citizens.
- Favors short-run profit planning over long-run investment planning.
- Should have regulations regarding product quality, safety, truth in advertising, and anticompetitive behavior.
- Tends to focus narrowly on GDP growth.
- Needs to bring social values and happiness into the market equation.
This is quite a list of shortcomings, and yet Kotler believes that capitalism is the best system out there! So what does he offer for solutions to this broken economic system? Join us on April 21st and hear for yourself, as we have invited Philip Kotler to our next Soundview Live webinar, Confronting Capitalism: Real Solutions for a Troubled Economic System. It’s sure to be an exciting and perhaps controversial discussion.