Thursday, 19 November 2015

The Super Rich Entrepreneurs Are The Heroes Not The Villains

Two things caught my eye recently, both of which should help give a little perspective to those anti-capitalists that are constantly bemoaning how unequal the world is and how the super rich make life a lot less fair. Even if we ignore the most obvious point they're missing - which is that to generate wealth you need to get people to part with their money voluntarily by providing them with something they want or need, which means creating value in society - there are two other important things to consider.

In the first place, as this article points out nicely - far from being the ugly fat cats that keep millions of people poor, entrepreneurs are actually the real saving graces. We are told we need 600 million new jobs in the next decade to fully employ the world’s eligible workforce, and entrepreneurs and big businesses are the top creators of new jobs, providing 70% of all new jobs in the world, and up to 90% in some emerging economies. Entrepreneurs may be very wealthy, but they are the main drivers of economic growth and the most important players in increasing global prosperity.

In the second place, as this article points out nicely - entrepreneurs do an awful lot with the money they make in terms of generous donations to noble causes. Just the top 5 of the world's most generous charitable donors (Bill Gates, Warren Buffett, George Soros, Azim Premji, and Charles Feeney) have donated over $70 billion thus far, with doubtless much more to come.

So the next time you read that the super rich are the selfish wealth hoarders that need to be brought down, and that entrepreneurs are the ones having a damaging effect on poorer countries' economic growth, the reality that they are the primary job creators and the most generous benefactors might hopefully serve you well in re-examining your perception of them, and of the market in general, if you are one of those to whom that applies.