Tuesday, September 14, 2010

On Communism, Capitalism, and Christianity




The Wall Street Journal has a front page story today about the fact that Cuba is going to lay off half a million state workers between now and March, and try to encourage the development of free market capitalism! Interestingly, the Journal article says that the Catholic Church has been recommending this course of action to the Castro brothers for some time now. But, how will these laid-off workers be absorbed into the private economy, when there is not much of a private economy to absorb them? 85% of Cuba's workers belong to the state union, and work for the state. Unlike here in America, where public sector jobs pay more than private sector jobs, when all benefits are considered, in Cuba it is the opposite. The few private sector jobs they do have pay three times what the public sector jobs pay.

Capitalism is based on the simple principle of providing goods or services that people decide voluntarily to choose to buy in a competitive marketplace. Socialism, of course, is based on the principle of taking away from some people to distribute to others; the opposite of voluntary choice.

One of the companies that has succeeded in the free market is Wal-Mart. Wal-Mart emphasizes the three A's. All cashiers are trained to Acknowledge the customer with a warm smile as soon as the customer gets within ten feet of the cashier. Then Wal-Mart expects the cashier to Act on behalf of the customer; providing excellent service to that customer. Finally, Wal-Mart expects their cashiers to Appreciate the customer; to let the customer know that their business is appreciated. One of the features of the Wal-Mart experience is that there is a greeter at the door to make sure you have a shopping cart and are greeted with a friendly hello when you enter the building and thanked when you leave. Simple, but basic. Wouldn't all of us be better off if we ran our families on those three basic principles?

Of course, there is much more to the Wal-Mart story. There is also the principle of providing people with the stuff they want at a price that is lower than anybody else's. Those cashiers I mentioned? They have to be willing to put into practice cheerfully and sincerely those three A's, while working for wages and benefits that are lower than the union-operated stores of Wal-Mart's competitors. To survive on the low wages, Wal-Mart employees have to be willing to go along with the Biblical injunction not to lay up for themselves treasures on this Earth; meaning that they have to live simply with not a lot of material possessions, and still be people who practice the golden rule established a couple of centuries ago by Jesus Christ.

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