The Soul of Capitalism

Our good friend, Shreedevi Thacker, brought to our attention this incredible interview with John Bogle conducted by Bill Moyers for PBS. And if for some reason, you cannot watch the video, do take the time to read the transcript. link

As Shreedevi notes, Bogle does not mince words when speaking about what is driving capitalism today and the impact that this is having on society. In Bogle's view, the productive system (which makes things) adds value whereas the financial system (which provides the money to help companies makes things) subtracts it. In Bogle's view this is not inherently wrong -- just way out of balance.

Today, the economy is driven largely by the financial system and the bankers, mutual fund managers, hedge funds and CEO's who profit from it. Financial companies now make more money than agricultural companies; and energy companies; and technology companies; and manufacturing companies; and so on. The 25 highest paid hedge fund managers each made more than $129 million last year.

Bogle, the author of "The Soul of Capitalism" is no mere social critic or academician. He is the founder and retired CEO of The Vanguard Group. Under his leadership, the company grew to be the second largest mutual fund company in the world. His awards and distinctions include being named as one of the "world’s 100 most powerful and influential people" by Time magazine and one of the investment industry’s four "Giants of the 20th Century" by Fortune magazine.