Winston Churchill’s Tiger, Cow, and Horse at the Heart of Europe’s Problems.
This is what we need more than ever: humility, simplicity, encouragement rather than punishment.
Towards the end of his life, despite his declining health but still biting wit, Winston Churchill uttered these few words that have gone down in history:
“Some see private enterprise as a predatory tiger to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon.”
With his unique sense of the formula, Winston Churchill added:
“Only a handful see it for what it really is: the strong horse that pulls the whole cart.”
Six decades later, the former British Prime Minister's observation is still valid. Especially in European countries. Just listen to the majority of recent political speeches, whatever the party: the company is in principle the object of suspicion or criticism.
Inflation? We need to launch administrative investigations to tax those who would abuse.
Wage stagnation? Pressure should be put on them to pay their employees more, with the state reserving the right to judge margins and prices.
Insufficient efforts in the energy transition? Here again, coercion, standards, and obligations decided by the public authorities prevail
Even if some companies are not exempt from all blame, it should be noted that in the words of many politicians, they are almost always considered as dangerous tigers or cows to be milked. Much more rarely as horses without which nothing would be possible: neither wage increases, nor social and tax revenues, nor the satisfaction of our multiple needs, nor innovations, nor ecological conversion ...
Those who lead the country or who aspire to lead it one day would do well to realize that European companies, like their direct competitors, are not only facing an unprecedented rise in energy costs and supply constraints.
They are also facing at least three major challenges, what we might call the “investment wall”.
The first wall concerns recruitment. Unemployment is still too high in several European countries, but this does not prevent many businesses from limiting their recruitment. This is not due to low order books but to shortages of available labor. Entrepreneurs, who are struggling to hire in many sectors, have to adapt to this situation, by recruiting differently, training more, or reorganizing.
The second wall concerns digital transformation. As consumers are increasingly demanding and risks are high in the digital economy, companies must invest massively: to meet their customers' demands, offer ever more products and services, equip themselves with more efficient management and analysis tools, but also to protect themselves from increasingly sophisticated cyber attacks or malicious acts.
Finally, the third wall is the response to environmental issues. All companies are now committed, albeit to varying degrees but with increasing intensity, to sobriety, efficiency, and carbon reduction. Consumers and employees alike are the first to demand these efforts from their suppliers and employers.
What are the consequences for our economic orientations?
Even if many European citizens think that “everything has already been tried”, there is at least one way that has never been tested: that of trust and de-bureaucratization. Rather than ever heavier constraints and controls, which unfortunately give politicians the dangerous impression of acting, it is time to try the opposite in public action: humility, simplicity, and incentive rather than punishment.
Some reading
Bitcoin Is Coming Out of 73 Days of Extreme Fear, but Don’t Make the Mistake of Giving In to FOMO. The Bitcoin price is currently trying to turn $22.7K into support.
Worry Because Elon Musk Sold 75% of His Bitcoin? No Problem, Satoshi Nakamoto Had Already Foreseen This. No one is more important than another in the Bitcoin revolution, as Satoshi Nakamoto once said.
Buy, Hold, and Don’t Watch Too Closely – Warren Buffett’s 3 Tips for Bitcoin Bear Market. The Oracle of Omaha may have been overtaken by new technologies, but it is still good advice in some cases.