This Motley Fool series examines things that just
aren't right in the world of finance and investing. Here's
what's got us riled today. If something's bugging you, too
-- and we suspect it is -- go ahead and unload in the
comments section below.
Today's subject: Political and economic
philosopher Ayn Rand died in 1982, but her legacy remains
very much alive. Unfortunately, some people in positions of
power have used parts of it to rationalize their own
dysfunctional, damaging behavior.
I definitely agree with the benefits of the "rational
self-interest" Rand advocated. As a society, the individual
drive for achievement inspires us onward and upward. However,
some of her adherents seem more keen on the "self-interest"
part than the "rational" part. Their ruthless selfishness and
soulless narcissism has torpedoed our economic well-being and
polluted our culture. Time to face the music, Ayn.
Why you should be indignant: Ayn Rand
defended selfishness as a virtue, and rejected the concept of
altruism altogether. In other words: Every man (and woman)
for him- or herself! Don't feel bad about trampling others to
get what you want! It's all about you!
Um,
no thank you. Needless to say, the prevalence of
that mind-set has screwed us all over, big time. Here are
just a few examples of the rampant self-absorption Rand's
teachings may have inspired:
revelationsfrom last year's Congressional hearings
regarding Lehman Brothers CEO Dick Fuld? Apparently, when
approached about conciliatory pay cuts to make up for poor
performance, Fuld dismissed advocates of the idea by
writing: "Don't worry -- they are only people who think
about their own pockets." Pot, meet kettle.
Chesapeake Energy 's (NYSE: CHK) Chairman
and CEO Aubrey McClendon faced heat for his 2008 $112.5
million compensation package. That hefty paycheck made him
the highest-paid CEO in the U.S., even though the stock
fell 59%. Even worse, the company's board approved paying
McClendon a huge bonus designed to help him buy back
Chesapeake shares he lost in a margin call. It also okayed
paying McClendon $12.1 million for maps and artwork from
his personal collection. Somewhere, Rand must be giving him
a great big thumbs-up.
Many bailed-out bankers are doing pretty darn well,
despite their companies' reliance on public funds to
survive. Word of bonuses for
AIG (NYSE: AIG), one of the poster children
for the parade of companies that committed EPIC FAILS,
stirred up outrage among many taxpayers. But hey, those
executives worked
hardat failing! No one could have failed quite
like they did! Â They
deservethat money!
Unfortunately, the business world's current
cowardly self-involvementfar overshadows the
executive heroeswho responsibly realize that their
interests extend beyond the contents of their own pockets.
It's truly sad that ethical CEOs who espouse common sense and
modest compensation, like
Costco 's (Nasdaq: COST) Jim Sinegal, have
become eccentric mavericks in corporate America.
What now: I avidly defend individual
achievement and the free market. But unless they're shaped by
personal responsibility and rock-solid ethics, those ideals
simply don't work in the real world. Unlike Rand, I believe
some forms of altruism are commendable, as long as no
coercionis involved. We should all be free to make
our own choices, including the strong, courageous decision
notto be completely self-centered. It's not healthy
to shut down our capacity for compassion, or to ignore how
our actions affect other people in business or our everyday
lives.
When
Whole Foods Market 's (Nasdaq: WFMI) John
Mackey gave the Fool his presentation on
conscious capitalism, he expressed similar philosophical
differences with Rand. He also pointed out that Rand's brand
of
narcissismgenerally doesn't make people happy at all. Continued... |