Saturday, 19 December 2015

"Made in America": A book review


“Made in America” by Sam Walton is the humble triumph by the figurehead of possibly the last great age of American capitalism and freedom.  It is an unapologetic assertion of the tremendous value Wal-Mart created during the post-World War 2 era – a time when more wealth and prosperity was created than ever before in human history.  I had strongly mixed feelings upon finishing this book – which begins with Sam’s humble beginnings as a retail franchise owner in 1945 Newport, Arkansas, and culminates with his death in April 1992. 

In one sense, I felt awe and inspiration.  I can see how the book is very useful as a learning tool for entrepreneurs or anyone participating in the marketplace.  The biggest takeaway for me in that regard is “thinking small”.  Sam resisted materialism, and thought that spending one’s money and building one’s lifestyle on flashy consumer goods was unnecessary and unsustainable.  Even as a multi-billion dollar enterprise, he focused on the fundamentals that made Wal-Mart so successful in the first place; i.e. passing savings along to the customer (cutting margins), and relentlessly focusing on small improvements in customer experience that make a huge difference.  In short, he didn’t put the cart before the horse. 

However, the most profound insight I gained was the philosophical underpinnings of Walton’s life work.  As I alluded to earlier, he was a product of the greatest era of American free markets and innovation.  The chapter “Giving Something Back” is the best argument for capitalism that I’ve read in a long time.  In response to socialist detractors who claim that Wal-Mart is exploitative and anti-compassionate, he explains that Wal-Mart in its nature is giving something to society, independent of its extensive charitable giving. 

For example, we did 143 billion in sales this year.  For the last ten years – 1982 to 1992 – we have averaged sales of, say, 13 billion a year.  So that’s 130 billion in sales.  If we only saved our customers 10 percent over that they would be paying if we weren’t there – and I think that’s very conservative – that would be $13 billion we’ve saved them.  That’s $13 billion which is a product of a free market system that allows us to operate efficiently, and it’s the reason our customers love us so.  The truth is that Wal-Mart has been a powerful force for improving the standard of living in our mostly rural trade areas, and our customers recognize it. (pg 305)

The rest of the chapter is an example of the intuition, knowledge, and responsibility that is required for voluntary (read: real) charitable giving to thrive.  “We have never been inclined to give any undeserving stranger a free ride, and we will never change our minds about that” (299).  Imagine a president or prime minister having the balls to say something like this!  I can hear the inner social justice warrior shrieks of “racism” like a nihilist jungle in my head. 

The bulk of Walton’s charity work focused on education.  “We want kids to learn about the tremendous potential of the free enterprise system and to see for themselves what all the advantages are of a stable, democratic government” (301).  He laments the administration and bureaucracy prevalent in most charities today, and the purposelessness of foundations covertly used as tax shelters.  A solution Walton found useful in curtailing this was favoring programs in which students are required to contribute some of their own money toward tuition.  “I’ve always preferred to hire people who had to at least partly work their way through school…The secret lies in motivating kids who aren’t getting educated today to want to put themselves through school, and to make them understand the rewards they can expect when they do so (303).”

Apart from a slightly negative attitude toward using charity as a tool for tax evasion – I consider it heroic – and democracy, I wholeheartedly agree with the philosophy of Walton’s initiatives.  Our current relativist, socialist, obedience-focused style of Prussian education is destructive for children and was for me.  The vast majority of young adults entering the workforce are not remotely competent in basic skills of discipline, responsibility, and critical thinking that are so necessary to a healthy functioning free market.  I personally ascribe my excellent second enlightenment (am I allowed to coin such a term?  Fuck it) self-education to resources such as Freedomain Radio, The Mises Institute, The Joe Rogan Experience and a few solid teachers in public school and college.

The sadness I feel upon finishing the book is linked to the inspiration.  I see how the drive, discipline, and commitment of one man and a team can generate such incredible wealth and value for a whole society. For me, Sam’s death at the end of the book is symbolic of the death of western civilization as we know it.  I see that my country and virtually every other nation around the world is giving up on personal responsibility, free enterprise and building a civilization for the long term.  Instead, we pale ourselves at the altar of fascism, socialism, white guilt, and accepting temporary pleasure at the cost of long term destruction of society. 

As I finish writing this, I am getting ready to attend my local philosophy meetup, where I get to connect with the greatest minds in my city: people who value freedom, honesty, rationality, empathy and virtue.  This is how we defeat, or at least find oasis against the rising tide of statism and self-detonation of western civilization.  By sharing knowledge and insight with the best among us, we expand the division of labour in virtue.  We can learn from Sam in “thinking small”.  Let us not focus on the gravity and totality of defending western civilization, but on the small things we can do every day to improve ourselves and our community.  Apart from philosophy, I like to focus on entrepreneurship and building a professional and personal network of people who like to discuss how to build wealth and provide value voluntarily. 

So let us learn what we can from great thinkers and drivers like Sam Walton, and do the little things that will protect and build the little freedom we have left.  It may be our last chance. 

No comments:

Post a Comment