John Bogle, founder of the mutual fund group Vanguard, has an excellent article in the Wall Street Journal, which is re-printed in part at economist’s view, where there are also a series of thoughtful comments following the Bogle post.
Bogle wrote: “But self-interest got out of hand. … Dollars became the coin of the new realm. Unchecked market forces overwhelmed traditional standards of professional conduct, developed over centuries. … We’ve moved from a society in which “there are some things that one simply does not do” to one in which “if everyone else is doing it, I can too.” Business ethics and professional standards were lost in the shuffle. … The old notion of trusting and being trusted … came to be seen as a quaint relic of an era long gone….
The managers of our public corporations came to place their interests ahead of the interests of their company’s owners. … The malfeasance and misjudgments by our corporate, financial and government leaders, declining ethical standards, and the failure of our new agency society reflect a failure of capitalism. …”
Beezer here. But in the commentary there was one observation that stockholder interests may be different than society’s. I disagree with that viewpoint.
I wrote the following in response to the original comment by wjd123.