Fourth Quarter 2016 – “The Actives, the Passives, and the Marxists”
Few terms grab the collective attention of citizens in a democracy more than “Marxism.” Defined loosely as a classless society, it reflects the social, political, and economic theories of its chief architect, Karl Marx, a German philosopher who collaborated with Friedrich Engels to author “The Communist Manifesto” in 1848. Marxism is often used interchangeably with the word “socialism,” an economic and political theory advocating collective ownership and administration of the means of production and distribution of goods. In other words, the opposite of capitalism. Despite some bad actors throughout history, capitalism has persisted because it rewards creativity and hard work, key components for the growth, wealth, and productivity of a functioning and thriving society. This is a system that equity investors know well and in which they have the greatest confidence. As far as most equity investors are concerned, socialism is a scourge that impedes progress, not advances it..