Posts tagged with: profit

Blog author: jballor
posted by on Tuesday, June 3, 2008

Is this supposed to be capitalism?

Geoff Colvin writes that a motivating factor in the recent crash in corporate profits, as well as the sharp decline in home values, was the phenomenon that “people began to believe that the more they borrowed, the better off they would be. Their thinking went like this: With the cost of capital so low and asset prices rising steadily, risk was evaporating.”

The precipitating cause of the downturn was that consumers “began to live within their means, shutting down the profit-growth machine.”

Any business or industry profit model that depends on consumers driving themselves deeper and deeper in debt is morally flawed and economically unsustainable. That’s not capitalism, that’s consumerism.

Compare the latter with the former, represented by this statement of a first principle of capitalism, “Thrift the First Duty”:

…thrift is mainly at the bottom of all improvement. Without it no railroads, no canals, no ships, no telegraphs, no churches, no universities, no schools, no newspapers, nothing great or costly could we have. Man must exercise thrift and save before he can produce anything material of great value. There was nothing built, no great progress made, as long as man remained a thriftless savage. The civilized man has no clearer duty than from early life to keep steadily in view the necessity of providing for the future of himself and those dependent on upon him. There are few rules more salutary than that which has been followed by most wise and good men, namely, “that expenses should be less than income.” In other words, one should be a civilized man, saving something, and not a savage, consuming every day all that which he has earned.

You don’t need to agree with Andrew Carnegie about everything to recognize the truth of these statements. Thrift is one of the things that separates civilized capitalism from savage consumerism.

When John concluded his gospel, he supposed that if all of Jesus’ doings were written down, “that even the whole world would not have room for the books that would be written.”

The last two millennia have seen quite a bit of change, to be sure. Christians have done their best to make John’s comment come true, filling the world with writings on the life of Jesus, the biblical revelation, and the implications of the gospel for every aspect of all walks of life.

But at the dawn of the third millennium, we are seeing an increasing shift to digital media (sometimes, but not always to the detriment of analog media like books), it’s conceivable that a single hard drive might have room for all the books that have ever been written (and not just the religious, theological, and biblical ones).

And as there has always been demand for the Bible (said to be the best-selling book of all time), so too there is demand for new and innovative ways to apply the power of computers to religious and theological texts. Currently these demands are being met by the de facto cooperation between non-profit and for-profit enterprises.

Take, for instance, the developing relationship between the non-profit Christian Classics Ethereal Library (CCEL) and the for-profit Logos Bible Software.

In addition to advertising on CCEL’s website and in their electronic newsletter, Ken Verhulst, a spokesman for CCEL, says that there’s an agreement for Logos software to be sold by CCEL. The non-profit then receives a share of the sale price. “These funds are used to keep CCEL going,” he says.

Phil Gons, who works in Logos’ press relations department, says that his company has “a good relationship with CCEL” and that they are in talks “about ways we can work together.”

Gons also points to BibleTech, a newly-inaugurated conference held in January hosted by Logos that had a large turnout of open source and non-profit folks. The conference website lists participants like OpenText.org, “a web-based initiative to provide an annotated corpus of Greek texts and tools for their analysis,” and the CrossWire Bible Society, “an organization with the purpose to sponsor and provide a place for engineers and others to come and collaborate on free, open-source projects aimed at furthering the Kingdom of our God.”

That isn’t to say that non-profits don’t feel some market pressures, too. Verhulst says that there is a strong push to move CCEL towards self-sufficiency. The donor who keeps CCEL going “is encouraging us to strive towards ‘independence’ — not profit status, just the ability to sustain ourselves.”

All this is a new twist on an old story in theological and biblical publishing. There have always been critics of major publishers like Zondervan, Thomas Nelson, and Tyndale, which are for-profit enterprises. Crossway, by contrast, is a non-profit venture that focuses on publishing around the English Standard Version.

The reality of the situation in the digital world is that open source and for-profit ventures are just as much partners as they are competitors. Given its practical focus, for example, CCEL generally limits itself to “public domain” works, while companies like Logos can use tools like their pre-publishing and community pricing systems to gauge market demand and bring major projects like Luther’s Works and Karl Barth’s Church Dogmatics to digital publishing.

As in other sectors, enterprise is the driver of innovation, without which other non-profit ventures might not be possible. Even “public domain” works were once published for sale. It isn’t the case, either in traditional or digital publishing, that the choice is simply between for-profit or non-profit efforts. Instead, we live with the all-or-nothing complementary reality of both for-profit and non-profit publishing. And we are better off for it.

Blog author: jballor
posted by on Friday, January 27, 2006

A number of bloggers have expressed grave concerns over Google’s decision to accomodate the demands of the communist government in its web search offerings in China.

David Mills at Mere Comments writes that Google is “serving a brutal government and helping it oppress its people, even if its service will prove only partially effective.” He complains that Google’s motives are purely pecuniary, and that the company is only acceding to the government’s wishes because “If it didn’t help the Chinese government oppress its people, it wouldn’t make much money in China.” Mills notes that Google is following Microsoft and Yahoo search engines in making these concessions

It seems a pretty easy judgment to make: Google is selling out. My first instinct is to agree and throw my lot in with those condemning Google, Microsoft, and Yahoo. Google executives have described it as a “difficult decision.” But Mills writes, “There is no ethical dilemma, because they do not have to do business in China at all.”

But this is the point at which such judgments themselves are rather simplistic and superficial. First of all, Google does have a responsibility to its shareholders to seek out new areas of profitability, and the most populous nation on the planet can hardly be overlooked.

The fact is that the people of mainland China are living under a repressive regime. The lack of such fundamental rights as free expression and speech are completely alien to us in the West, and so we react strongly when we hear about censorship and denial of human rights abroad.

But the question then becomes, “What is the best way to move China toward economic, political, and religious freedom?” It has long been assumed by proponents of liberal democracies that these three aspects of freedom are inextricably linked. If you truly have one, then you truly have all three. That position is being put to the test in China and other countries, which are seeking to liberalize elements of the economic and business sectors without substantially altering their hold on religious and political freedoms.
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