How much is enough? | Kevin Cavenaugh | TEDxPortland

Summary

In this heartfelt and thought-provoking talk, the speaker reflects on personal experiences with hardship, the principles of Milton Friedman's capitalism, and the pursuit of 'enough' rather than unchecked greed. The speaker highlights the growing wealth inequality, the housing crisis, and gender wage gaps, proposing that redefining 'enough' could lead to more sustainable and compassionate business practices. Through real estate development projects that prioritize affordability and equality, the speaker demonstrates how small shifts in mindset—toward enough—can create long-term positive change for individuals, businesses, and society as a whole.

Takeaways

• 😀 The speaker's personal story of losing everything during the recession and adapting to a new life highlights the power of resilience and adaptability in tough circumstances.
• 😀 Milton Friedman's economic philosophy, which focuses on maximizing profits as the social responsibility of business, is contrasted with the speaker’s belief in the power of ‘enough’ as a guiding principle.
• 😀 The idea of 'enough' challenges the traditional notion of greed and proposes that having a little more than enough, rather than endless excess, could lead to a more sustainable and equitable society.
• 😀 A parallel universe is imagined where the economic ideas of Toba Bata, who advocates for 'enough,' replace Milton Friedman's, leading to a fairer distribution of wealth.
• 😀 The wealth gap in America is explored, with CEOs earning disproportionately more than their employees, a stark contrast to other countries like Canada, England, and Germany, where the gap is much smaller.
• 😀 The speaker’s role as a commercial real estate developer highlights the ethical dilemma of wealth accumulation through long-term investments and the stark income inequality in the industry.
• 😀 The housing crisis in Portland is used as an example of the broader issue of unaffordable rent, with rent increasing 20 times faster than wages, contributing to a rise in homelessness.
• 😀 The speaker has created affordable housing for homeless people, breaking ground on a new type of building offering low-cost rooms with basic amenities, without any public subsidy.
• 😀 The concept of 'enough' is applied in the context of fair wages, where the speaker has introduced a flat pay structure within their company to eliminate the gender wage gap and ensure equal pay for all employees.
• 😀 The speaker encourages businesses to rethink the idea that maximizing profits for shareholders is the only path to success, suggesting that companies which treat employees well can achieve better long-term results and stock valuations.
• 😀 The speech calls for action by urging individuals to use the power of 'enough' to change their lives, businesses, and communities, and to challenge the status quo of inequality and greed.

Q & A

What personal experience does the speaker share in the beginning of the talk?

The speaker shares a personal story from eight years ago when, after losing everything in the recession, he had to move his family into a new, rundown building that became their home. He calls it an 'adventure' to ease the difficulty of the situation, highlighting the resilience of his family despite the tough circumstances.

Who is Milton Friedman and what is his economic philosophy?

Milton Friedman was a renowned economist who won the Nobel Prize in Economics and is considered the father of modern American capitalism. He famously argued that the social responsibility of businesses is to increase profits, promoting the idea that 'greed is good,' which has shaped much of modern economic thought.

What alternative to Milton Friedman's philosophy does the speaker propose?

The speaker proposes the philosophy of 'enough,' inspired by the Indonesian poet Toba Bata. Instead of greed, which seeks more than necessary, the concept of enough suggests having just a little more than what is required, promoting a more sustainable and equitable approach to wealth and business.

How does the speaker illustrate the disparity between CEO pay and employee wages?

The speaker contrasts the pay of CEOs in 1958 (8 times that of average employees) with today's reality, where CEOs make much more. He emphasizes that such high disparities are problematic, especially in comparison to other countries like Canada and Germany, where the pay gap is much smaller.

What experiment does the speaker conduct with his employees' compensation?

The speaker conducts an experiment where he shares a portion of the wealth generated by his buildings with his employees. Over time, employees who stay with him can accumulate a small share in the buildings, potentially earning significant wealth. This approach reflects his belief in shared success and equity.

What was the result of the speaker's experiment with employee equity?

The speaker's experiment revealed that his pay was still much higher than his employees, but when considering the long-term wealth generated by shared ownership, his employees' stakes in the buildings could potentially make them much wealthier over time. However, he still found himself more 'greedy' than the 1958 capitalist ideal.

What housing initiative does the speaker introduce in Portland, Oregon?

The speaker introduces a housing project aimed at addressing Portland's housing crisis. This project involves creating affordable, minimalist housing units for homeless people and low-income residents, with rents significantly lower than typical market rates, based on the concept of 'enough.'

How does the speaker address the issue of gender pay inequality in his company?

The speaker tackles gender pay inequality by restructuring his company so that all employees, regardless of role or gender, are paid the same salary. This decision is motivated by his desire to be on the right side of the gender wage gap, and he acknowledges that this approach may not work for everyone but is a step in the right direction.

What is the significance of Johan Lundgren’s pay cut in the context of this talk?

Johan Lundgren, the CEO of easyJet, voluntarily took a pay cut when he discovered his predecessor, a woman, earned 5% less than he did. The speaker uses this example to highlight the importance of leaders taking responsibility for closing pay gaps, suggesting that such actions are not only ethical but can lead to better outcomes for companies.

What is the 'power of enough,' and how does the speaker encourage the audience to use it?

The 'power of enough' refers to the idea of having just enough, not more than necessary, in areas like wealth, rent, and equality. The speaker encourages the audience to reflect on how they can apply this concept in their own lives, businesses, and communities to promote fairness, sustainability, and compassion.