Shocking Answer: Who Really Wins When “Evil Corporations” Succeed?
“Man, our business is killing it!!”
“I never dreamed we’d be able to grow this quickly!”
That’s what my friend Aaron told me this weekend on our 9-mile run through our local national park. I was just happy he was carrying the conversation so I could focus on keeping up the pace!
“It’s so rewarding to see progress on this company we’ve worked so hard to build. These days, finding new customers is easy. My biggest challenge is with my employees!”
Hmmm. That statement caught my attention. Knowing how competitive and driven Aaron can be, I wondered what kind of “employee problems” he was having.
Ironically, Aaron was about to shed some serious light on the dynamics between employees and corporations. A topic which is hotly debated in today’s political climate.
What Does “Success” Really Look Like?
“When I bought the business in 2016, the place was a wreck.”
Aaron’s gate started to pick up as he told me the history of his entrepreneurial business. I was having trouble keeping up with him, but I wanted to hear more about his employee issue!
He told me about the cold calls he made to companies around town. About working with regulators to make sure the company was in compliance. And about personally interviewing every new team member that came on board.
“So tell me about this team,” I asked him.
Frankly, I was really curious to hear what the culture was like at Aaron’s company.
“I love these guys!!” he replied. “I mean, they’re like family to me. And the bigger we get, the more difficult it is for me to meet with each of them as often as I would like.”
That’s not at all what I was expecting.
As the owner of a thriving small business, Aaron wasn’t only concerned with how much profit he was accumulating. Instead, he was working hard to make sure that each employee felt valued and appreciated. To keep an open line of communication so he knew what mattered to them. And to provide for the dozens of families that counted on him to put food on their table.
“Zach, this year we’re going to hit $1 million for our payroll! That’s what it’s all about! Building this business so our team members can have fulfilling lives.”
And that’s what “success” looks like for Aaron. He’s deeply committed to the people who work for him. And that commitment is paying off in spades as his business (and cash flow) grows.
Quite a contrast to the “evil corporations” the media loves to talk about.
Capitalism at Its Best: Competitive and Compassionate
As I drove home from our run, I couldn’t help but think about the difference between Aaron’s corporation (that serves his customers and his employees very well) and the daily media barrage against “evil capitalism.”
These days, politicians from the left have decided to take a stand against capitalism and corporate America, portraying businesses as selfish entities that do more harm than good.
It makes me sick to my stomach when I hear these arguments. Because the truth is that successful corporations actually benefit Americans — not the other way around.
The first way that corporations benefit Americans is pretty obvious.
Successful businesses hire employees, and they invest in these employees through training, fair wages, benefits, and more.
As corporations become more successful, they naturally pay more to keep the employees they’ve worked hard to train. Which is why we’re seeing wages increases for workers — especially for the lower paying positions.
Secondly, corporations are not simply soul-less entities. They are owned by individuals like my friend Aaron — or by you and me when we buy shares of stock.
So when corporate profits grow, individuals benefit. Hopefully you’ve personally benefited from the tremendous growth these “evil corporations” have enjoyed through the investments we’ve talked about here at The Daily Edge.
A public stock market, and recent apps and services that make this market more accessible to all Americans leaves us in a spot where everyone can participate in our country’s expansion.
And third, if you’re one of those people who believe only the rich benefit from corporate profits and a higher stock market, consider this…
Even the process of the rich earning profits can benefit those of us who are not in the “elite wealth” category.
Because as this wealth gets spent — even on frivolous purchases like cruises or high-performance cars — the wealth gets spread around.
Consider the cruise lines that hire more employees, and pay higher wages if they have to compete to find competent workers… Or the skilled factory jobs that are necessary to manufacture high-performance vehicles.
There are tens of thousands of workers receiving paychecks today who benefit directly from affluent spending.
And we haven’t even mentioned the philanthropic gifts that have been made possible by corporate profits padding the bank accounts of generous donors.
So the next time you hear someone spout off that “capitalism is evil” or that “corporations don’t care,” remember that free enterprise in the U.S. is responsible for improving the quality of life for all Americans — not just the ones that politicians are throwing under the bus.
More importantly, remember that you can profit from these “evil corporations” simply by doing your research, investing in companies with stable businesses, and ultimately supporting the thousands of workers that these businesses employ.
Here’s to growing and protecting your wealth!