The elites feasting at the top of the food chain are now promoting Inclusive Capitalism as the solution to a litany of problems currently facing the system.
So it is back to orthodox thinking or just plain common sense where Environmental, Social, and Corporate Governance (ESG) will no longer cut it, and it is back to Inclusive capitalism.
If ESG philosophy drives small and medium-sized businesses to bankruptcy and mass unemployment ensues, that triggers a string of problems from collapsing bond values in financial markets to social unrest on the streets.
“Environmental, Social, and Corporate Governance (ESG) will no longer cut it”
WIN INVESTING
Businesses survive by providing goods and services that people need and want by employing factors of production as efficiently as possible.
The business owner, the entrepreneur, is the invisible hand of the market, and he/she risks his capital and time to make a profit.
The free market and a well-informed public, a media reporting the truth, would drive businesses that don’t adhere to ESG principles, and will go out of business.
So, let’s say company X is a rogue breaking all the ESGs, pours toxic chemicals into rivers, is cruel to animals, and employs child labour and slaves in dangerous working conditions. Company Y produces the same product and benefits the local community, creates local jobs, subsidies for public amenities, sports centres, bike lanes, parks etc., and disposes of toxic waste responsibly.
“The free market and a well-informed public, a media reporting the truth, would drive businesses that don’t adhere to ESG principles, and will go out of business”
WIN INVESTING
We would bet that in a free market, inclusive capitalism with no explicit ESG Principles enforced, rogue company X would go out of business.
Let’s also assume that company X is discriminatory, racist, sexist, and homophobic and would only employ male WASPS with right-wing extremist views.
Company Y decided to employ a transexual Muslim because they excelled in aptitude tests, and as it turns out, the candidate is 40% more productive than the average worker.
Company Y is more profitable because it has a policy of employing the best person for the job and does not discriminate.
Company X, in the example, is likely to go bankrupt due to low productivity, miserable worker relations, and poor public relations.
“There is too much greenwashing around it. Too much virtue signalling. People think if they hang up an ESG sign, they are a virtuous company” – Lynn Forester de Rothschild
Here is the takeaway: inclusive capitalism encompasses ESG principles by default. Let markets be markets
So Rothschild admits ESG has been a failure and is advocating sustainable capitalism.
“I believe that ESG as a term should be put in the dustbin,” said Lynn Forester de Rothschild, the public face of the infamous Rothschild dynasty who is on a mission to promote inclusive capitalism.
Criticising ESG, she said, “There is too much greenwashing around it. Too much virtue signalling. People think if they hang up an ESG sign, they are a virtuous company.”
We would go back to a narrative of what great companies in history did to be great. How are they treating the planet?
The Council For Inclusive Capitalism CIC has affiliations with institutions like the World Economic Forum, the UN and the IMF. With such heavy-weight international institutions working in collusion, a new corporate world order could be in the making.
The Trio, CIC, UN and IMF are promoting stakeholder capitalism, the idea that international corporations have a responsibility to participate in social engineering and they are required (in the name of the greater good) to manipulate civilization through economic punishments and rewards.
Put simply, this trio seeks a more harmonious system, with labour and capital government all coexisting with existing ruling elites remaining feasting at the table.
“Money is not going to follow if there is not a decent return. Money is there, but it has got to be based on a public-private partnership” – Lynn Forester de Rothschild
We do believe there is enough capital in the world to address the climate challenge. It is a huge number, and by 2050, we will need to spend 7.5 trillion dollars a year to solve the problem,” she said at the B20 India Summit.
“Between 2011 and 2020, in total, including public and private finance, we spent 4.8 trillion dollars. So our ramp-up has got to be enormous.
We desperately need good government policy to turbocharge the private market,” she added.
“Money is not going to follow if there is not a decent return. Money is there, but it has got to be based on a public-private partnership,” she said.
She suggests governments should subsidise clean energy, making it affordable for the consumer and encouraging investors into the space.
“There are direct subsidies that I think governments should provide,” she said.
She advocated governments should also work with multi-national agencies to put into effect debt instruments where governments take the first risk in some of these investments.
“Right now, we are in a situation where investors can not make a decent return, and until then, we will not reach the level of investment that we need,” she added.
Definition of inclusive capitalism
She believes we have to profitably solve the problem of people and the planet.
“In inclusive capitalism, we have got to grow our economies, and we have got to accept that capitalism is the engine for poverty reduction,” she said.
Inclusive capitalism is about CEOs and investors running their companies for the benefit of all
In other words, inclusive capitalism benefits all stakeholders, not just shareholders.
“We are moving in the right direction, but still, money has to chase companies doing the best things regarding the planet and people,” she said.
“In America, we have a blowback in that somehow taking care of your workers or planet is seen as a political action.
Trying to stop technology is like trying to stop the wind. It is not going to happen,” added Rothschild.
So capital flows will likely increase into state-sponsored companies that adhere to inclusive capitalism.
