Ethics and Values: November 2006 Archives

Giving Thanks

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Since we are about to enter a day of complete gluttony, followed by a day of consumerism gone mad, I thought it might be good to reflect again on the original intent behind the Thanksgiving holiday:

"Whereas it is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor; and Whereas both Houses of Congress have, by their joint committee, requested me to recommend to the people of the United States a day of public thanksgiving and prayer, to be observed by acknowledging with grateful hearts the many and signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness:

"Now, therefore, I do recommend and assign Thursday, the 26th day of November next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be; that we may then all unite in rendering unto Him our sincere and humble thanks for His kind care and protection of the people of this country previous to their becoming a nation; for the signal and manifold mercies and the favorable interpositions of His providence in the course and conclusion of the late war; for the great degree of tranquility, union, and plenty which we have since enjoyed; for the peaceable and rational manner in which we have been enable to establish constitutions of government for our safety and happiness, and particularly the national one now lately instituted for the civil and religious liberty with which we are blessed, and the means we have of acquiring and diffusing useful knowledge; and, in general, for all the great and various favors which He has been pleased to confer upon us.

"And also that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations and beseech Him to pardon our national and other transgressions; to enable us all, whether in public or private stations, to perform our several and relative duties properly and punctually; to render our National Government a blessing to all the people by constantly being a Government of wise, just, and constitutional laws, discreetly and faithfully executed and obeyed; to protect and guide all sovereigns and nations (especially such as have shown kindness to us), and to bless them with good governments, peace, and concord; to promote the knowledge and practice of true religion and virtue, and the increase of science among them and us; and, generally to grant unto all mankind such a degree of temporal prosperity as He alone knows to be best.

"Given under my hand, at the city of New York, the 3rd day of October, A.D. 1789."

George Washington

My father passed along a news clip about a study called the Bank of America Study of High Net-Worth Philanthropy that compares the giving patterns of entrepreneurs versus those who inherited their wealth. High net-worth is defined in this study as someone having at least $200,000 in income or $1,000,000 in net assets. The conclusion: high net-worth entrepreneurs give on average $232,206 compared with heirs and heiresses who give an average of $109,745. For those of you not ready for mental math this morning, that is over twice as much! The study is long on facts and statistics, and short on any analysis, so I'll take a stab at it.

Most entrepreneurs I know who have had financial success still pinch themselves once in a while to make sure their successes really happened to them. They often use words like "blessed", "lucky", and "fortunate" to describe their success. The days of sweating payroll are still fresh in their minds. They remember how many times they came within days of failure. They remember all of those sleepless nights.

Most entrepreneurs I know understand that they did not make their business a success in a vacuum. It took the hard work of employees who also took a risk by joining their fledgling business. It took investors who took a risk in their idea. It took bankers who believed in their cash flow and their character. And many see God's hand at work in their fortune, understanding that they are but stewards of what they have been given.

Most entrepreneurs I know viewed success, from the very beginning of their business, to mean much more than profit, a paycheck and "the big payday." Many talk about the ability to give back if they able to be successful. I do an exercise with aspiring entrepreneurs in which I ask them what they would do if they won the lottery tomorrow. For many, philanthropy is at the top of their list.

I will not even try to judge what is in the hearts of those who inherit their wealth. I will say for many of them, it is a fixed and limited sum. What they get from their inheritance is all they have. Entrepreneurs, on the other hand, build their wealth from a process that they can repeat over and over again.

In this age when out economy is being transformed by entrepreneurs, what a wonderful opportunity to look more and more to them to take on the burdens of our society. What a wonderful opportunity to rethink our broken system of governmental redistribution of wealth that is doomed to entropy, rather than the boundless potential of entrepreneurial wealth created and freely shared.

In case you don't follow college football, there is an amazing story building this season. Rutgers University, a team that for years and years was lucky to win a few games, is undefeated and knocking at the door of a national championship. OK, the odds of the championship are a long-shot at best, but from someone teaching at a small Division I school, this kind of story warms my heart.

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It seems that Rutger's success is also warming the bank account of at least one small business owner in New Brunswick, New Jersey. From the Philedelphia Inquirer:

Yesterday afternoon, fans hungry for Scarlet Knights merchandise packed into Scarlet Fever, a popular shop on Somerset Street, where owner Steve Ostergren juggled two ringing phones. The store, teeming with jerseys and sweatshirts and flags, had bare patches where customers had grabbed up gear as fast as workers could unpack it.

"This is the busiest we've been in 18 years," Ostergren said. "It's unbelievable."

Ostergren, a Rutgers alumnus, was thrilled.

So is Ostergren trying to profiteer from the sudden surge in demand for all things that are red and have a big "R" on them? Not in the least. In fact, in an interview with Wall Street Journal Radio this morning he said that he had not only kept his prices in line, but had actually added large quantities of a couple of tee shirts for students that are priced at only $5.

He knows that it is these same customers who will keep him in business in the years to come -- even if the football team falls back into its losing ways. If he treats his customers fairly now, they will remember him later.

By the way -- don't even bother to try and buy anything from Ostergren's web site. His store is so busy that he has temporarily suspended sales via the web.

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This page is a archive of entries in the Ethics and Values category from November 2006.

Ethics and Values: October 2006 is the previous archive.

Ethics and Values: December 2006 is the next archive.

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