Politics and business have always been at odds. It’s a fine balance to be maintained by those skilled at reading, interpreting and predicting the opinions of the majority. Business alone is not seen as fit to rule because the profit motive fuels politically irreconcilable ideas distinguishing the have’s from the have not’s.
If left to its own devices, the gap widens. Poverty increases. Education declines. Employment rates go down. The state is forced to subsidise those left behind by the ruthless profit system. Taxes increase to fund this increasingly inefficient design.
In such a system, a growing state is inevitable.
The eco-system responds in true Hegelian form. Capitalism becomes unsustainable due to high tax rates. Profit is no longer maximised. Evolution drives the system forward.
Capitalism grows a conscience. As a leech, the system cannot sustain the profit motive. It dials back the onslaught. Enter King Reports and corporate governance. Triple bottom line and sustainability metrics ensure the longer term perspective by business.
Profitability and benefit of the entire populace are increasingly more intertwined. The heavy state becomes a burden. The eco-system rebels once more.
A minimal state is effected. The convergence of business and politics reaches an all-time high.
Like all cycles – rinse and repeat.
