Bill Gates says capitalism doesn't work. Huh?

This from the guy who has been probably the single biggest beneficiary of capitalism's rewards - ever.

His idea is "creative capitalism". Its sounds more like socialized capitalism to me, which sounds more like just another form of wealth redistribution.

One problem I have is with Gates terms. Capitalism is creative, period. Creative capitalism is just plain capitalism.

If you read his speech at the World Economic Forum in Davos, Switzerland, he seems to have a firm grasp of the mechanisms and benefits of free-market capitalism.

Gates:

"The genius of capitalism lies in its ability to make self-interest serve the wider interest."

Bill, so if it serves "the wider interest" please tell me again why we need this so-called "creative capitalism"?

Gates also agrees with The FDC that life is good, and getting better all the time.

Gates:

"The world is getting better. In significant and far-reaching ways, the world is a better place to live than it has ever been."

But, Gates says the crux of the issue for him is that he is impatient. Despite improving conditions for even the poorest on this earth, he wants prosperity to happen quicker. It's a noble idea that hardly anyone would disagree with, but his high-minded solution will undoubtedly devolve into just another run-of-the-mill wealth distribution scheme administered by the government.

Gates gives some examples of recent "creative capitalism", and to me it's just good ol' capitalism. Capitalists have always looked for their niche to make a profit. Just because a new product or service benefits the poor doesn't make it "creative capitalism", it's just regular capitalism.

To help make his point Gates trots out a quote from Adam Smith:

"How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortunes of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it."

When you consider this quote was written more than 225 years ago, you realize that Gates brand of "creative capitalism" was thought of a long time ago. Gates uses this quote to strengthen his point, but it only proves my point that "creative capitalism" or capitalism coupled with philanthropy is not a new idea.

No Mr. Gates, everyone can't be as wealthy as you. You went from being just another college drop-out to the wealthiest man in the world. Count your blessings, not your guilt.

Gates has gone through many phases in his life. As he was sitting on top of the most valuable company in the world several years ago he was enjoying life and all of the fruits of his accomplishments. He enjoyed his stature for awhile and bought everything he'd ever wanted, then, looking for more meaning in his life, he transitioned into his philanthropy phase(The Gates Foundation). That must have left him unfulfilled, so then the guilt set in. Guilt over how much money he has versus well, every single other person in the world. Don't sweat it Bill, I'm not jealous of you. I admire you. You provide inspiration to me. Anyway, Gates is now guilt-ridden, and that guilt must be assuaged. Hence, his view of the same capitalism that made him what he is today.

Larry Kudlow read Gates speech too, and points out that:

"free-market capitalism is the greatest anti-poverty program ever devised by man."