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CSalvador - How Steve Jobs Changed Capitalism - Text Analysis
by CSalvador - (2011-10-17)
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Starting from Steve Jobs ‘ actions and stuffs , the article deals with the change of Capitalism.

Steve Jobs changed the way we approach to the means of communications and the way we think about art, design and invention, but above all he proposes a new way to think about Capitalism:

no longer " the consumer is king", but you should not give consumers what they want because they don't know what they want; this means that consumer culture hasn't inevitably to pander to the conventional and that markets are not necessarily conservative.

Besides the Apple's co-founder demonstrates that excellence comes at a cost; this evidence is against both the open-source movement, that thinks all good things can be made collaboratively for free and to the race-to-the-bottom chains that believes that the cheapest good will be chosen instead of an expensive one. It follows that you could and you must charge a premium price for a premium product since you can't sustain quality by giving things away.

Cost is not the only thing to consider. Jobs' success proves that true excellence often requires tight control, the refusal to licence third parties and to tie devices to their own content suppliers.

Jobs reinforced the respectability of multinational brands, making clear that good brands have products of substance behind them.

All that said so far make you think that Capitalism has to be rethought.

Steve Jobs' idea may sound old-fashioned: people in business have been demoted in importance beneath market forces. Therefore the dynamic efficiency of free market means that every last bit of potential for increased efficiency and profit will be squeezed by the invisible hand of every business doing what is best for itself. If business believes this it seems no reason to pay men and women so much for their contributions. But thinking this is a big mistake: while nature itself needs aeons for random mutation to produce and test every possibility, human innovation can work quicker  because it is not random at all, so individuals can change the game because the market doesn't automatically generate all the good ideas. Once more Jobs and his team are an example because they came up with a new type of device that really took off.

Exhibiting that the market is not maximally efficient and cannot be left to take care of things by itself, Jobs show that capitalism is not perfectly self-regulated.

 

For all these reasons capitalism looks now different because of what Job's company achieved. They have challenged both lazy markets and idealistic anti-capitalist critiques.

The very last sentence, with which the article ends, is very closed to the last sentence of Arnold Toynbee's essay in which the essayist completely separates wealth and well-being.