Illustrated through a brief history of Dell Computer Corporation
Started by Michael Dell in his dorm room at the University of Texas in 1984, Dell Computer Corporation grossed over $3 Billion Dollars in 2013. Although it is rarely mentioned in discussing the history of Dell Computers, it is negligent not to point out that Michael Dell formed the company for his own profit, and not for the benefit of others. He did so against the sage advice of his family, who expected him to continue with college and medical school to become a doctor.
Dell had developed a new model in the personal computer market – direct sales. It proved to be a hit. Although he initially built the systems himself to sell to college classmates, he eventually hired employees to keep up with the demand.
Michel left college to continue to build the business. He had picked an industry that was just about to go supernova. And just as things were really starting to roll, along comes the Internet, which was the perfect complement for the Dell direct sales model.
By this time, the company had gone public, and Michael Dell’s net worth had skyrocketed. A business built with $1000 cash in a dorm room was now one of the big players in the personal computer industry, and had made Michael a billionaire.
In the earliest days, the company built up operations in the Austin area. As the company grew, operations expanded to Ireland, Malaysia, China, Brazil, and other locations around the world, employing over 100,000 people.
In 2013, Michael Dell determined to take the company private again. In a cantankerous buyout, Dell and Silver Lake Partners bought out the existing shareholders, and took the company off the stock market. As preparations for the buyout were put in motion, rumors began to circulate that there would be layoffs following the takeover. Many employees had worked for Dell for 15 years or more, and were now fearing for their job.
Indeed, after the buyout was complete, an announcement was sent to all the employees of the company, offering a generous separation package for anyone who wished to accept a layoff.
If the downfall of the system hasn’t hit you yet, I’ll spell it out for you. Michael Dell was too lazy to finish school. He took a massive risk, dropping out of school to build computers instead of following a path that would almost certainly have lead to a very comfortable life as a doctor. Then, out of laziness and greed, he hired people to build the systems while he grew the business. I’m not one to speculate, but I can’t help but think that he would never have hired those people if he didn’t think he would make more money for himself that way.
And thus it continued. Michael Dell’s greed and laziness eventually led to the company having over 100,000 employees throughout the world. Salaries have gone to buy groceries and houses, raise children, and take vacations.
And that’s really the rub. Greedy, filthy, money-grubbing capitalists can’t seem to make their billions without also providing jobs for others. Oh, and products or services that the public wants.
If capitalism really worked, people like Michael Dell would be able to get obnoxiously wealthy without having to provide goods and services that other people wanted, and without having to hire employees and making their lives better. Capitalism is a complete disaster.
