Value-Based Fees: How to Charge—and Get—What You're Worth: A Guide for Consultants, Second Edition

1.1. THE ETHICAL NATURE OF CAPITALISM

We live in a capitalistic society. It is apparently a creaky system that happens to work far better than others, since in our lifetimes we've seen it grow to be the dominant economic configuration in the world. The exchange of goods and services for some form of remuneration, with a minimum of government interference or arbitrary regulation, is the system within which we live.^[]

^[] Of course, capitalism is far better for generating wealth than for distributing wealth, which is why communism, socialism, and other mechanisms of state control have been popular (or at least tolerated) at various times. But they wind up creating an even worse class system, a fact to which any communist state, from the old Soviet Union to the lingering Cuba, can attest.

Capitalism is based on a highly ethical set of premises: You agree to deliver a product or service of an agreed-on quality at a certain time and in a certain condition; in return, I agree to provide certain remuneration in a specified amount on a particular date. That sounds simple, but it's actually the basis for all of our transactions involving the exchange of value for compensation.

Russia has failed at capitalism not because of an underlying or lingering communist belief system and not because of a lack of resources (it has oil and natural gas wealth, which could finally enable it to dictate terms to western Europe) or an unwilling populace. It has failed because the ethical basis required for ...