Defining and fighting for Capitalism

I heard a brief discussion with John Bogle, the founder of Vanguard Funds, on The Motley Fool radio show on NPR this afternoon. He's got a new book out called, "The Battle for the Soul of Capitalism" that sounds like an interesting read.

The little of the discussion I heard focused on the rather abrupt shift in the late 80's and 90's from rewarding "owners" to rewarding "managers". In other words, the focus moved from those who invest capital and take risk to those who manage things for those people or institutions. In my mind, although he didn't mention anyone during the little of the interview I heard, that means "Neutron" Jack Welch and Al "Chainsaw" Dunlop and Dennis Koszlowski and all the boys at Enron.

They essentially invested nothing but enriched themselves massively by manipulating the system they were brought in to manage.

As a manager of someone else's capital myself, I'm a firm believer in adequate rewards for competence and excellence in management. But things got a little out of hand, and I don't see any end in sight. Christopher Cox, the new head of the SEC is talking about greater transparency for management compensation, but I don't think that's anywhere near enough.

Anyway, I know absolutely nothing about John Bogle short of he created an incredible investment vehicle that seems to stay at the forefront of the mutual fund world. I'll disclose completely, unlike some Supreme Court nominees we know, that I don't own any Vanguard funds, but my kids do.