Entrepreneur Behind ‘WOKE INC.” Predicts Reckoning Against Woke Capital
No, Americans don’t want to fund ‘woke capital’ – According to an exclusive Daily Wire poll by Echelon Insights from earlier this week, Americans want to invest in companies that pursue profits over political passions.
The poll found that a whopping 58% said it was a “bad thing” for corporate executives to preach and push for “political or social means.” While only 29% of respondents saw it as a “good thing.”
According to the poll, even the most progressive investors prefer to focus on “profits instead of Environmental, Social, and Governance (ESG) goals.” As they are more interested in choosing their assets based on the rate of returns rather than progressive agendas.
For example, asset managers like BlackRock, State Street, and Vanguard are known to pressure companies they hold “to pursue racial or gender-based quota systems, diversity programs, and other political initiatives.” Which has been proven to be costly, ultimately bringing asset holders lower returns.
Entrepreneur Vivek Ramaswamy, the author of the popular book, Woke Inc., explained this phenomenon in an interview with The Daily Wire’s “Morning Wire.” Saying that there is no “distinction” between actual investors and investment institutions.
Ramaswamy argued that Americans don’t like cultural and political debates being influenced without their consent. Claiming this topic is neither “a right or left-wing issue.”
“That’s why you see a two-to-one ratio here,” he added.
Ramaswamy also pleaded that advancing causes through corporate entities is not the best way to seek change or generate wealth. Arguing that the more effective way to generate wealth for yourself “is through a capital market that most effectively enhances return” while donating to your cause of choice “philanthropically.”
He added, “what you’re doing through a politicized economy is effectively handing that power over instead to a small group of investment institutions, to the corporate boardrooms of this country that aren’t even the most effective ways of advancing your political agenda, even if you wanted to — say, from the progressive side or from the left-wing side.”
Ramaswamy believes the solution for all this is market competition. He says that under the current system which focuses way too heavily on ESG scores, asset managers like BlackRock, State Street, and Vanguard primarily operate the way they do to receive government favors in return.
“If you look at who got to administer the COVID-19 stimulus packages, it was none other than BlackRock — that’s a pretty profitable business to be in,” Ramaswamy shared. “If you look at who staffs the Biden administration, including the Treasury Department, including in the Council of Economic Advisors, including the vice president’s staff — a lot of BlackRock alumni. They are doing what the party in power wants them to do in return for favors that allow them to aggregate greater not only profit, but greater power.”
In the end, Ramaswamy is optimistic, but still calls on Americans to be vocal: “I think that that reform is coming, but it’s only going to come because of actual market competition. Not because we wish it into existence.”