The Wall Street Journal published a glowing interview last week with Wichita’s Charles Koch. The column focused mostly on Koch’s “market-based management” approach to running his $60 billion, 80,000-employee company. But Koch also observed how being a privately owned company enabled Koch Industries to focus on long-term gains, rather than quarterly profits. “We couldn’t have achieved the profitability we have if we had been a public company,” he said. “No investor would have been patient enough to allow us to build a firm oriented on long-term growth and profits.” Many politicians and voters have the same problem: They focus too much on the next election rather than the long-term needs of the nation.
Posted by Phillip Brownlee
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34 Comments
It’s called the Sunday effect for politicans. What is ever on the Sunday talks shows and on “60 Minutes”, we must have a bill to fix it.
That’s Congress for you. Reactionary, short-term fix, never look at the long term.
Patience is a virtue. Only wish the American people had enough patience for Iraq.
Isn’t this the guy who’s company was found guilty of over 22,000 counts of felony fraud? The same company that has an international reputation for the buying and selling of politicians? I could be wrong, but he sure looks familiar.
Last week’s televised BOE meeting showed three Wichita minority students who each received $20,000 college scholarships from the Bill and Melinda Gates Millennial Scholars fund. Two or three minority students received $40,000 Dell Foundation scholarships. That’s real global-age leadership: billionaires who live in Washington and Texas helping poor, but talented kids in Wichita.
Gates has given $75 million to U Washington as a matching 1/2-grant to enable it to build a 21st century genomics research center. (On top of previous donations in information technology.) Also full-ride and partial scholarships to THOUSANDS of socioeconomically-disadvantaged Washington-state students of all races. Bill Gates went to Harvard (to which he has been generous, as well as MIT), but Seattle is his home.
A few years ago, record and movie mogul David Geffen gave UCLA $200 million to aid its $1 billion med center project to educate healthcare workers, promote research and deliver top-grade medical care to Los Angeles residents. He was at the time about as rich as the Koch brothers (today far less rich). He was a New York native who attended U Texas-Austin. But LA is his home.
At some point, truly visionary capitalists feel moved to make major contributions to their communities, and shape their futures. They give generous financial aid to kids who have no relationship to their companies, to build a stronger nation.
One can say that Koch Industries employs 80,000 people, which is beneficial to them and their communities to be sure, but that’s a trade: “Work for me and we’ll provide for your families’ needs, and you’ll contribute part of your work value to me.” That’s not the same as generosity, in which the benefactor gives without expectation of the recipients’ giving something back to the giver.
Bob and Jan Davidson, education-software pioneers, have endowed a new school, and successfully lobbied the Nevada legislature and governor to support its development as a public charter school, to educate brilliant Nevada children. I think they’re hectomillionaires, not decabillionaires.
Nevada isn’t a crown jewel of intellectual talent like the San Francisco Bay Area, Boston and New York. It doesn’t have outstanding schools or universities. But the Davidsons are performing a remarkable experiment in an attempt to effect change.
Maybe the Koch brothers could mount a similar initiative here. Or maybe they could give Collegiate and the Independent School $100 million each, to build first-rate science and computer facilities, hire top-notch faculty, and provide scholarships to very talented students.
If Wichita kids aren’t felt to be worth investing in, by two Wichita-native brothers who can easily afford to make the trial, let’s do it and see what happens, investment, to try to construct the foundation of a prosperous 21st century city, why is this feeling held?
The Koch’s are notorious for funding right-wing think tanks like the Cato Institute that says business should be left alone from taxation and regulations.
If you think that’s a good idea, then Koch is a “great man.” Joe Williams does, because even though he’s a working stiff like the rest of us, he’s convinced he’s a “player” like the Koch’s. It’s easier than facing reality for him.
But if you think using your billions to influence politics and drive the country to right-ward is self-serving in the extreme, as I do, then the Kochs’ are just assh*les.
And BTW, the dad made all the money. They just glommed on for the ride. Some “Horatio Alger story” . . .
Ah lefthook,
You still have the George Soros of the world pumping their money into politics too.
Don’t pretend like it is only the “rich” funding the Republicans when it is happening on the left too.
And BTW, Joe Williams, if “patience is a virtue” why didn’t Bush let the Hans Blick and the UN Weapons Inspectors finish their investigation of WMD’s in Iraq before he invaded?
Answer–he was afraid they weren’t going to find any, which it turns out they wouldn’t have.
We waited for over a year lefthook before any military action was taken.
If you want to get technical we had been “waiting” since the early 90’s…
Nathan–
Have you ever heard of “bear and squirrel” stew? That’s what you conservatives do.
You have the conservatives massively funding right-wing think tanks (the bear) and you find ONE example on the other side (the squirrel), so you can say, “see, they do it too–it’s equal.”
Fortunately, the American people aren’t buying what you’re selling anymore, Nathan.
You Bush-backers are in your “last throes, if you will.”
Read it and weep, conservatives–
Poll: Clinton outperformed Bush(CNN) — In a new poll comparing President Bush’s job performance with that of his predecessor, a strong majority of respondents said President Clinton outperformed Bush on a host of issues. … Respondents favored Clinton by greater than 2-to-1 margins when asked who did a better job at handling the economy (63 percent Clinton, 26 percent Bush) and solving the problems of ordinary Americans (62 percent Clinton, 25 percent Bush).
The Cato Institute. Cato the Elder was known as “The Censor”. This hardly connotes a lover of freedom. He was opposed to the spread of Hellenic culture. Let’s see, the Greeks invented rationalism. They created the alphabet and phonetic writing. Nothing like championing irrationalism and illiteracy. We know that the Romans couldn’t do math, as anyone who has tried to do multiplication and division with Roman numerals knows.
He was apparently misogynistic and cruel. Seehttp://en.wikipedia.org/wiki/Cato_the_Elder
I don’t know how these things add up to a role model for 21st century Americans to laud and follow.
Lefthook,
When I get home tonight I will find the breakdown on donations to parties and show you how wrong you are…
LeftHook
Let me give Nathan a hand here. Check out these numbers.
http://www.opensecrets.org/orgs/list.asp?order=A
Well, if we’re talking about party funding, you might be right.
That’s limited to 2,000 per person by law.
But we’re not–we’re talking about funding “think tanks” that become the main source of Bush-con thought and have become implimented into policy.
Poor George can’t even say where he stands on contraception because the religious fundies have bought him so bad . . .
All this talk about Koch and no mention of his company’s unwritten rule to fire anyone who disagrees with them politically. I knew a couple of people who worked there and they would routinely get voice messages and emails saying how good republikans are for the economy and business and they should vote for them. And if anyone disagrees they find some pissant reason to fire them. Great business ethic Chuck.
If those people that were fired for political reasons were anything like the posters here I probably wouldn’t want them working for my company either :)
Not into people who love their Constitutionally guarnateed freedoms? Not into people who don’t respect others regardless of thier beliefs? No problem, most pencil dicked neocons don’t. Just stick your head back up your ass and vote republikan again.
ummm…that is supposed to be “Not into people who respect others regardless of their beliefs?” oops
Because “freedom of speech” is just another “liberal value” to Nathan, like that damned liberal first amendment.
Lets face it, we need to scrap the Constitution. Not only was it drawn up 200 years ago (time for it to be rewriten by shrubs standards) it was drawn up by freedom loving, terrorist coddling, liberal traitors!!
LH, we’re probably on the same side with this issue, but you got to learn. You can’t use anything with (CNN) before it to trump somone!
Oh My God! What did the evil Charlie Koch say? Then if the father did all the work why is it the number one privately held business? I am sure Charlie had nothing to do with that growth.
Did you see in the paper that Koch said Warren Buffet (one of the richest men in America) “hasn’t been sufficiently exposed to the ideas of liberty.”
He’s probably just mad that Buffett actually EARNED his money instead of riding daddy’s shirt-tails and government contracts . . .
Buffett has made tens of thousands of other people rich. How many others has Koch made wealthy, besides himself and his family, that is?
“President Clinton outperformed Bush on a host of issues.”
To me this seems like a “well, duh” type of finding. Let’s see a show of hands for those voting the opposite way.
Charles Koch said that he couldn’t have done as well with a publicly held company. It is interesting that the top 3 closely held companies are headquartered in the hinterland (Koch, Cargill and Bechtel). Moo!
Publicly traded Microsoft, Apple, Dell and Intel have created far more wealth than any of these. Given the money they started with, they’ve run circles around the Koch brothers. But when you are a medievalist (”success” is defined being enormously wealthy amidst poverty) you can’t achieve what enlightened leaders achieve.
Charles Koch’s statement in the WSJ that he couldn’t have done as well as he has done running a publicly-traded company is a tacit admission that he is not really that smart. It’s okay, he’s from Wichita. He and his brother could donate a couple hundred million to educate Wichita’s highly talented kids, but he’s not smart enough to figure out that leaving a positive legacy is a lot more powerful than achieving personal enrichment and leaving a legacy that will not last another 100 years. He says that reading F. A. Harper’s “Why Wages Rise” caused him to have a “peak experience”.
A real peak experience occurs when the circumstances statistically indicate you are going to die, and you overcome the fatal forces. Peak experiences don’t occur when you are reading in the comfort of a library. They occur when you put your life on the line, and you survive. Climbing Denali and a major storm hits. Trying to sail in the Whitsunday solo race, and you’re pummeled by 60 foot waves. Trying to ride a surfboard at Wiamea or Maverick’s.
Mr. Koch has never had a “peak experience”. Mr Koch has had a Kansan “peak experpereince, which is an oxymoron, Now he is too old too old to experience on., apparent. . He is a Kansan. Kansans, like Mr; Koch, have no clue what a REAL peak experience is. Unless he wants to CREATE one. Like saying, ” Everyone knows that Kansas kids are stupid, I am going to prove that some of them are NOT.”
Heartlander, please:
Charles Koch is one of the 15th wealthiest people in the world and that number is based solely on the value of his company. Not on his personal cash or stocks etc.
Most of Bill Gates’ wealth is in Microsoft stock.
His legacy is running a company and funding organizations that promote the notions of liberty. His contributions to society are far deeper than throwing some money at a feel good charity.
It is real easy for you to spend his money.
They also donate a ton of money through Youth Entrepreneurs of Kansas that targest at risk youth.
Sorry you are so bitter.
“running a company and funding organizations that promote the notions of liberty”
Would that include the aforementioned firing people with non Republican political views? Some promoter of liberty!
I too have known people who worked for Koch. They say it is a dreadful place to work. My sister in law was made to train her own replacement! They told her if she didn’t like it, she could forego her final 3 weeks of employment and that Koch would contest her unemployment benefits!
Not a place I would ever wish on anyone. Koch is an Ass….
please provide even a little shred of proof that Koch fires “non Republican empoloyees”
What is so silly about that is that Koch is more libertarian than Republican. They could give a rat’s ass about the GOP.
johngalt,
HA HA HA HA HA HA HA HA HA HA!!!!!!
Yeah, $70 billion in further capital gains cuts = ‘doesn’t give a rat’s ass about the GOP.’ That’s some funny shit, johngalt. You ought to try standup now that Dennis Miller has stopped being funny.
My dad worked for Koch. He said Charlie was one of the nicest people he ever met. Unlike other bosses he had Charlie would actually talk to the “peons”.I still would like to know if all Charles is doing is riding his dad’s coattails how did Koch become the nation’s largest privately held company.Also Kochs donate money in this city you probaly just don’t hear about it because he doesn’t want to brag about it.
I never met Charles, but I knew his parents. His father was an engineer who made his first fortune building oil refineries for Lenin and Stalin. Then he came back and became a founding member of the Jack Ash Society. Talk about gratitude!
John Galt, Bill Gates’ stock IS his percentage of ownership of the company x its market cap value.
The point is he’s sharing a large percentage of his wealth. His donations to Harvard, MIT and U Washington are hardly “feel good” nor is his $1 billion Millennial Scholarship fund, nor his donation of $54 million to a primarily black school district in California–he doesn’t even live there–nor his tens of millions channeled so far to fight AIDS and other crippling diseases in Africa. He thinks there will be returns to society. He’s a really smart guy. It wouldn’t pay to bet against him. Some cynics might say he’s trying to buy political capital, and deflect monopoly criticism, but he could have given a quarter of his donations and been lauded as America’s greatest philanthropist in nearly a century.
I don’t feel bitter. I feel bad for Wichitans. Unlike most Wichitans, I get out and about frequently. Wichita is a poor community, and its economy is floundering. I just don’t get it why Wichitans don’t value high level education for their children. You don’t even currently have any KU graduates on the BOE, much less academically knowledgeable cum laudes or Phi Beta Kappa members. Why do you fear knowledge? Why do you believe that if Wichita had a 20+ AP course program as they do in Oklahoma City, Tulsa, Johnson County, KC, Dallas and Denver public schools, it wouldn’t help your kids succeed in the 21st century global economy? Where do you get this notion?
heartlander, knowledge is power. If the low man gets knowledge he could amass the power to challenge and eventually put the current ‘elite’ out of business.
Kind of funny. If that happened then you would really hear screaming that we need welfare/economic reform.
The Koch brothers grew up in a time when Wichita was a small hinterland city. Their father sent them back east to receive high-quality private educations. When I said Charles Koch wasn’t very smart, I didn’t mean that literally. You don’t get through MIT and complete two graduate-degrees there without being extremely smart, and you don’t become enormously wealthy without being extremely smart.
But his thesis that he could not have succeeded with a publicly-traded company is sad. Such a company would have to deal with the “messiness” of hearing and responding to many voices. Kinda like democracy. Some people think that benevolent dictatorships are the “best” form of government. The problem with them is that they constrict talent’s rising.
Someone mentioned Mr. Koch’s talking with “peons”. Actually Bill Hewlett and David Packard are credited with “Management By Walking Around”. They took HP public. Probably most readers here have never used HP calculators, which are AMAZING hand-held computers. But do you use HP printers?
David Koch has supported Kansas-native Nobel Laureate Vernon Smith. But Dr. Smith’s influence pales next to that of integrated-circuit inventor and Kansas-native Nobel Laureate Jack Kilby, who worked for Texas Instruments, a now publicly traded company. Actually, Mr. Kilby’s influence on the global economy through invention, dwarfs that of the Koch brothers. It’s not even close: Kilby’s invention lies at the heart of a $3 TRILLION elecronic industry. Most of you have never heard of John Bardeen. He invented the transistor, and the concept of superconductivity. He supervised a grad student who invented the laser and the LED. He convinced dubious Xerox executives to support the Xerox Palo Alto Research Center that invented the now-ubiquitous graphical user interface paradigm. He died wealthy, but not superrich. His ideas have changed the world.
What would be really neat for Kansas’s richest man is to have a real peak experience. Like when Leland Stanford and Amos Throop created world-changing universities in California (Stanford and Caltech). When you are 70 years old, and have accomplished amazing personal success, what do you want to leave as a legacy for America’s and humankind’s benefit?