The World of American Business.docx

The World of American Business.docx

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TheWorldofAmericanBusiness

Chapter6TheWorldofAmericanBusiness

ThebusinessofAmericaisbusiness

PresidentCalvinCoolidge

BeforeYouRead

1.WhydoyouthinkbusinesshashighprestigeintheUnitedStates?

2.Whydopeoplewanttogointobusinessforthemselves?

Wouldyouwanttobeyourownboss?

3.Whatdoesitmeanto"gofromragstoriches"?

4.HowistheworkforceoftheUnitedStateschanging?

TheCharacteristicsofAmericanBusiness

AtisessentialtobecomefamiliarwithtwowordsinordertounderstandthemeaningofbusinesstoAmericans;theyareprivateandprofit.Businessesaredirectlyorindirectlyownedandoperatedbyprivateindividuals（orgroupsofindividuals）inordertomakeaprofit.Incontrasttotheseprivatelyowned,for-profitbusinesses,therearepublicgovernment-ownedandoperatedinstitutionsaswellasnonprofitinstitutionssuchaschurchesandnonprofitcharitableorganizations.Theseorganizationsandinstitutionsarenottobeconfusedwithbusinesses.

ThePrestigeofBusinessandtheIdealofCompetition

ThestatementbyPresidentCoolidgeinthe1920s—"ThebusinessofAmericaisbusiness"—stillpointstoanimportanttruthtoday:

BusinessinstitutionshavemoreprestigeinAmericansocietythananyotherkindoforganization,includingthegovernment.MostAmericansbelieve,forexample,thatbusinessesaremoreefficientandbetter-runthanthefederalgovernment.Whydobusinessinstitutionspossessthisgreatprestige?

OnereasonisthatAmericansviewbusinessasbeingmorefirmlybasedontheidealofcompetitionthanotherinstitutionsinsociety.SincecompetitionisseenasthemajorsourceofprogressandprosperitybymostAmericans,competitivebusinessinstitutionsarerespected.Competitionisnotonlygoodinitself;itisthemeansbywhichotherbasicAmericanvaluessuchasindividualfreedom,equalityofopportunity,andhardworkareprotected.

Competitionprotectsthefreedomoftheindividualbyensuringthatthereisnomonopolyofpower.Incontrasttoone,all-powerfulgovernment,manybusinessescompeteagainsteachotherforprofits.Theoretically,ifonebusinesstriestotakeunfairadvantageofitscustomers,itwilllosetoacompetingbusinessthattreatsitscustomersmorefairly.Wheremanybusinessescompeteforthecustomers'dollar,theycannotaffordtogivetheminferiorproductsorpoorservice.

Acontrastisoftenmadebetweenbusiness,whichiscompetitive,andgovernment,whichisamonopoly.Becausebusinessiscompetitive,manyAmericansbelievethatitismoresupportiveoffreedomthangovernment,eventhoughgovernmentleadersareelectedbythepeopleandbusinessleadersarenot.ManyAmericans,believe,then,thatcompetitionisasimportant,orevenmoreimportant,thandemocracyinpreservingfreedom.SocloselyiscompetitivebusinessassociatedwithfreedominthemindsofmostAmericansthatthetermfreeenterpriseratherthanthetermcapitalismismostoftenusedtodescribetheAmericanbusinesssystem.

Competitioninbusinessisalsobelievedtostrengthentheidealofequalityofopportunity.Americanscomparebusinesscompetitiontoaraceopentoall,wheresuccessandstatusgototheswiftestperson,regardlessofsocialclassbackground.GainingsuccessandstatusthroughcompetitionisoftenseenastheAmericanalternativetosystemswheresocialrankisbasedonfamilybackground.Businessisthereforeviewedasanexpressionoftheideaofequalityofopportunityratherthanthearistocraticideaofinheritedprivilege.

BusinesscompetitionisalsoseenbymostAmericansasencouraginghardwork.Iftwobusinesspeoplearecompetingagainsteachother,theonewhoworksharderislikelytowin.Theonewhospendslesstimeandeffortislikelytolose.Becausebusinesspeoplemustcontinuallycompeteagainsteachother,theymustdevelopthehabitofhardworkinordernottofail.

Americansareawarethatbusinessinstitutionsoftendonotliveuptotheidealsofcompetitionandthesupportoffreedom,equalityofopportunity,andhardwork.Americanssometimesdistrustthemotivesofbusinesspeople,believingthattheyarecapableofputtingprofitbeforeproductsafety,oracleanerenvironment.Therefore,mostAmericansbelievebusinessesneedsomegovernmentregulation,althoughtheymaydisagreeonhowmuch.Evenwiththeseflaws,however,mostAmericansbelievethatbusinesscomescloserthanotherinstitutionstocarryingoutcompetitionandotherbasicvaluesindailypractice.

ThePrestigeofBusinessandtheDreamofGettingRich

ThereisasecondreasonwhybusinessinstitutionsreceiverespectintheUnitedStates.OneaspectofthegreatAmericanDreamistorisefrompovertyormodestwealthtogreatwealth.IntheUnitedStates,thishasusuallybeenaccomplishedthroughsuccessfulbusinesscareers.Allofthegreatprivatefortunesinthenationwerebuiltbypeoplewhoweresuccessfulinbusiness,manyofwhomstartedlifewithverylittle.Careersinbusinessstillofferthebestopportunityfortheambitiousindividualtobecomewealthy.

AlexisdeTocquevilleobservedthegreatattractivenessofbusinesscareersforAmericansasearlyasthe1830s.HewrotethatAmericansstronglypreferredbusinesstofarmingbecausebusinessofferedtheopportunitytogetrichmorequickly.Eventhosewhowerefarmerswerepossessedwithastrongbusinessspirit.Theyoftenransmallbusinessestoaddtothemoneytheymadefromfarming.DeTocquevillealsonoticedthatAmericanfarmerswereoftenmoreinterestedinbuyingandsellinglandforaprofitthaninfarmingit.Thus,evenindeTocqueville'sday,whenmostAmericanswerestillfarmers,theseedsofabusinesscivilizationhadalreadybeenplanted.

Notonlyisbusinessseenasthebestwayforindividualstobecomerich,itisalsoseenasbenefitingtheentirenation.Throughcompetition,morepeoplegainwealth.Bycontrast,asocialisticsystemofproductionanddistributionofgoods（onethatisownedandoperatedbythegovernment）isseenasgreatlyinferior.Asocialisticsystemisdistrustedbecauseofthemonopolyofpowerheldbythegovernmentthateliminatescompetition.Therearefewcountries,ifany,intheworldwherebusinessinstitutionsaresostronglypreferredovergovernmentinstitutionsasagenciesforproducinganddistributinggoodsandforprovidingservices.Forexample,theUnitedStatesisoneofthefewindustrializedcountriesintheworldthatdoesnothaveuniversalhealthcareguaranteedandmanagedinsomewaybythegovernment.Americanshavetraditionallypreferredtohaveasystemwherehealthcareproviderscompetewitheachotherinafreemarketandindividualsarefreetochoosetheirowndoctorsandhospitals,evenifthatmeansthatsomepeoplegowithouthealthinsurance.

TwoKindsofAmericanBusinessHeroes

BecauseofthemanybeliefsthatconnectbusinesstothewealthandthetraditionalvaluesoftheUnitedStates,peoplewhoaresuccessfulinbusinesshavesometimesbecomeheroestotheAmericanpeople.Twokindsofbusinessheroeshavegainedwidespreadrespect:

"theentrepreneur"andthe"organizationmanorwoman."EntrepreneursprovideexamplesoftraditionalAmericanvaluesintheirpurestform,andthesepeoplearemostlikelytobeidealizedbytheAmericanpublic.Thesecondkindofhero,"theorganizationman/woman,"isseenasalessperfectexampleofbasicAmericanvalues,butheorshestillcommandsgreatrespect.

TheEntrepreneurasHero

Entrepreneursarethepurestkindofbusinessheroesforanumberofreasons.Thefirstreasonisthattheysucceedinbuildingsomethinggreatoutofnothing.Thepeoplewho,morethan100yearsago,builtupthenation'sgreatindustries,suchassteel,railroads,andoilrefining,wereusuallyentrepreneurs.Theystartedwithverylittlemoneyorpowerandendedupastheheadsofhugecompaniesthatearnedenormousfortunes.

ThefactthattheseearlyentrepreneursbuiltgreatindustriesoutofverylittlemadethemseemtomillionsofAmericansliketheheroesoftheearlyfrontierdays,whowentintothevastwildernessoftheUnitedStatesandturnedforestsintofarms,villages,andsmallcities.Theentrepreneur,liketheearlierheroofthefrontier,wasseenasaruggedindividualist.

EntrepreneursmadesomuchoutofsolittlethattheybecameheroestothecommonpeopleinAmerica.Entrepreneursoftenbeganascommonpeoplethemselves;withouttheaidofinheritedsocialtitleorinheritedmoney,theybecame"self-made"millionaires.TheywerethusperfectexamplesoftheAmericanideaofequalityofopportunityinaction.

ThestronginfluenceofthesuccessstoriesoftheearlyentrepreneurscanbefoundinthegreatpopularityofthenovelsofHoratioAlger,whichwerepublishedinlate19th-andearly20th-centuryAmerica.About17millioncopiesofthesebooksweresoldtotheAmericanpublic.ThecentralthemeofAlger'snovelsisthatintheUnitedStatesapoorcityboyorapoorfarmboycanbecomeawealthyandsuccessfulbusinessmanifheworkshardandreliesonhimselfratherthandependingonothers.ThisisbecausetheUnitedStatesisalandofequalityofopportunitywhereeveryonehasachancetosucceed.

Bydiligence,aquick-wittedyoungfellowcanrisefromragstoriches.

InAlgersfirstpublishednovel.RaggedDick,apoorcityboywhoshinesshoesforalivingbecomesRichardHunter,asuccessfulandwealthybusinessman.Theherorises"fromragstoriches"andfulfillstheAmericanDream.Dicksucceedsonlypartlybecausehelivesinalandofequalityofopportunity.HissuccessisalsoduetothefactthathepracticestheAmericanvirtuesofself-relianceandhardwork.AccordingtoAlger,Dick"knewthathehadonlyhimselftodependupon,andhedet