Sunday, May 07, 2006

Using free market ideas to build a better business

Wall Street Journal: Private Enterprise by Stephen Moore
Synopsis: Charles Koch (pronounced Coke) is the owner of the $60 billion, 80,000-employee Koch Enterprises - the largest and most profitable privately held company in America. His political philosophy, unlike left-wing capitalists Buffet and Soros, is based on applying free market principals at the level of the firm. Employees (all of them, not just management) are treated like owners and big bonuses are paid for entrepreneurial behaviour that betters the bottom line.
Money quotes:
"Just as central planning is a failure in running government, so it is at the level of the firm"

"Laws and principles that facilitate the advancement of peace, prosperity and social progress are as immutable as the laws that work in science . . . . Politicians often come up with misguided policy solutions, because they suffer from Hayek's 'fatal conceit' and believe they can violate basic laws of economics. They are just as misguided as the man who jumps out the 14th floor of a building convinced that he can repeal the law of gravity."

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