Confessions of a Former News Editor - Capital Idea

by Ryan Pugh

Since entering the financial services world in my new position, I have been doing a lot of thinking lately about economic theory here in America and how we can fix it.

I’ve come to the realization that economic theories like capitalism, socialism, etc. are fine concepts on paper but are made imperfect by one glaring flaw and the respective flaws are based on the seven deadly sins. Capitalism is derailed by greed whilst socialism sees its ultimate demise from sloth. The capitalist can’t get enough (think Daffy Duck and his dealing with the genie, “It’s mine, it’s mine, it’s all mine”) whereas socialism is rooted in the idea that everyone must do their fair share. Well, if you have those unwilling to work, it upsets those who are willing to work.

Many of those who promote socialism as the perfect economic theory point out how efficient it is in European nations. Sure, those individual economies do thrive, however, I will counter that those nations do not have anywhere near the diverse population of 300 million-plus who reside here in the States. It’s much easier to get more on board the smaller the group.

My idea is for a concept I call ‘conscientious capitalism’ where companies focus on what they do best, enjoy controlling their share of the market and everyone lives happily ever after.

The example I use to illustrate this point is the downfall of Pizza Hut. I don’t know if it’s fair to call what Pizza Hut has gone through the past couple decades as a downfall, but I think everyone can agree that the Pizza Hut of 2026 pales in comparison to the Pizza Hut of 1986. Anyway, the Pizza Hut of the 70s and 80s had an ambiance about them that made the place feel like a tiny little Italian restaurant on the outer edge of town. It had the red and white checkered tablecloths, the low lighting, the Pac-Man table, we had it all and we didn’t know it. Well, when the 1990s came along, the powers that be at Pizza Hut decided they would try and keep up with what Dominos was doing. For you see, Dominos had gained ground in the market on Pizza Hut by focusing on delivery. Remember the “30-minutes or it’s free” promotion Dominos introduced in the 1980s or the “Avoid the Noid” campaign of the 90s? Both of those promotions were based on the fact Dominos did delivery and did it well. Dominos was so not in the sit-down restaurant arena that most Dominos only had a small bench for customers to sit and wait for their pickup order.

Well, I’m guessing the Pizza Hut brass couldn’t stand that Dominos was gaining any ground on them (like when Don Draper showed his disdain for advertising rival Ted Chaough by telling a newspaper reporter “I’ve never heard of him” when the reporter asked Draper about a Chaough on the fantastic TV drama “Mad Men”). So, I guess capitalism can also be influenced by another one of those seven buggers and this time it’s pride. Anyway, Pizza Hut started going more toward the delivery angle in the late 1990s. They redesigned their restaurants and made them less homey.

I’m not saying Pizza Hut should have completely ditched delivery, I’m just saying don’t lose focus of what you do well trying to crush your competitors. But that’s greed.

Look at other fields like the legal arena. Are there different law firms who have different specialties? They seem to be able to carve out the market, so everyone is happy. There are a lot of people in this world who need services and products. The market is big enough for everybody.

Now you fine folks will probably think The Progress has some lousy commie in its ranks but I’m here to tell you, I am far from it. I believe competition is good. I just believe total domination is a bridge too far.

I believe socialism has its place as well in very small doses. I believe the concept works in the world of professional sports which have revenue sharing like the National Football League. Without revenue sharing, which was introduced to the league by former NFL Commissioner Pete Rozelle and adopted in 1962, cities like Green Bay, Pittsburgh, Cincinnati, etc. would barely be able to support teams let alone thrive like they do. But much like Europe, socialism works because you only need 30 individuals or so –the owners—on board. You don’t have to get 300 million on board.

I know this column is probably stepping all over John Nash’s theory that won the 1994 Nobel Prize in Economics and Nash’s ideas were much more thought out and brilliant than the swill that oozes out of my cranium for these columns. But Nash’s theory has been around for over 30 years but no one in the market seems to have taken heed.

Gordon Gecko uttered the famous line “Greed, for lack of a better word, is good” in the 1987 Oliver Stone film “Wall Street” but I’m not so sure.