La Colombe CEO: American capitalism is in danger | Opinion

Like most Americans, I believe in capitalism. For many of us, this is a belief we’ve had ingrained since birth —something given to us by our parents, and, like most gifts, perhaps taken for granted.

As a businessman, the importance of capitalism is central to my life, not because of raw business success such as growth or profits, but for something discovered early in my career while crisscrossing the world, scouring the mountains of Haiti or the altitudes of Uganda. What became particularly clear to me is what the absence of capitalism looks like and what that can do to people. The lessons are clear from Panama to Bolivia to Papua New Guinea and Rwanda: If properly controlled, capitalism is a force for good.

Working in coffee means doing business in countries with some of the highest rates of poverty and devastation imaginable. In response, my company, La Colombe Coffee, has made it our mission to work directly with farmers and workers. We are creating new economic freedoms – surprising at times even to us. This amazing transformation has allowed me to see firsthand the liberating power of capitalism and the resulting free markets that benefit everyone.

But back home, I see America at a crossroads when it comes to our brand of capitalism. We are in danger of losing our way, a symptom not of capitalism itself, but of something untethered consuming it – and I am not alone, my fellow CEOs agree.

First, it’s important to establish some context.

Our brand — American capitalism — has led our nation toward exceptionalism but has always included rules: from our founders, who wrote that the role of government is to prevent “an immoderate, and especially unmerited, accumulation of riches,” to the Trustbusters through the New Deal, and up to the breakup of the Bells. Historically, the American government is the best referee of capitalism.

For decades, we proved that rules are good for business. We generated tremendous wealth while protecting consumers, strengthening the middle class, and lifting workers.

Then something changed in the 1980s. Our rules weakened, some disappeared. Our leaders (from both the left and the right) changed our economic philosophy from moderated capitalism to unchecked trickle-down. We eviscerated our safety net. Our middle class began shrinking, workers’ wages stagnated, and more and more wealth became concentrated in the hands of a very few.

The referees were taken off the field, and one team has been running up the score while the average American is made to believe “This is capitalism. Love it or leave it.”

Is it any surprise that young people (especially women) have lost faith in American capitalism? They see an economy that does not work for them, and they are right.

I learned early that for La Colombe to be successful, we needed to put people — not finances — at the core of everything we do. Our brand has flourished, our quality is second to none, and our profitability is rock solid and climbing. Conversely, a business or a government that only serves to increase wealth for those who already have it will not be able to stand much longer. The game will inevitably reach “tilt,” and then it’s “game over.”

It’s time to bring the referees back onto the field. We need to revamp our brand of capitalism.

If America were a company, we would be saying that consumer confidence is falling, and its long-term economic outlook isn’t rosy. If we were its board of directors, we’d say it needs a new executive at the top.

As the board of directors of America, we need to take a hard look at the resumés of everyone running for president — our applicants for the top executive position. Who understands the threat we are facing? Who has a plan to get us back on track?

When the majority of the people running for president fail to recognize the threat, or live in fear of big change, or fear their wealthy donors — or worse yet, declare capitalism dead to be switched to socialism — the answer is clear.

So far only Elizabeth Warren has a plan to put the vast sums of wealth that have been hoarded by the ultra-rich and taken out of our economy back into play – this is money that will be spent by consumers and will strengthen businesses. She will help balance the scales on college debt and lower tuition so our workforce can focus on building their lives. She understands the role financial institutions play in shaping the wealth of our country, but also understands the need to bolster safety nets through consumer protections. And that doesn’t even scratch the surface of what she’s planning on doing. She’s got viable plans to fix it and isn’t afraid to get it done.

Only Warren has vision. She knows what “Capitalism 2.0” looks like and how to get our country there. She has not lost faith in us, in our democracy, or in American capitalism. Other candidates need to catch up if they want to convince voters they can make this country start working for everyone again.

Todd Carmichael is the cofounder and CEO of La Colombe Coffee.