Patagonia: Capitalism At Its Finest
Despite his now former-billionaire status, you probably haven’t heard of Yvon Chouinard, founder of Patagonia.
He doesn’t tweet poo emojis at people, or launch himself into space, or rub elbows with pro sports commissioners.
He prefers a quiet life, focusing on conservation efforts from his modest home in Wyoming.
And he’s got something just about every other zillionaire doesn’t.
Enough.
Last week, he gave his entire company away
Not a tiny slice for charity, keeping most for himself.
The whole f*cking thing.
He summed up his shocking decision while simultaneously delivering an elegant diagnosis of the failings of modern capitalism, “Hopefully this will influence a new form of capitalism that doesn’t end up with a few rich people and a bunch of poor people.”
What a concept!
I haven’t been able to stop thinking about this guy over the last few days.
Just when you thought our system of privatized profit was about to implode, he comes along and proves to everybody that you can deliver incredible products without destroying the world and keeping most of the spoils for yourself.
I don’t want to wade into the debate of the evils of capitalism, or how much money one person ought to have.
I just want to shine a light on this incredible dude.
“Inspiration” gets thrown around a lot, but the way he’s lived his life embodies everything about the cliché.
Patagonia has a history of busting capitalism’s chops
The retail-mania that is Black Friday is antithetical to Patagonia’s core value of using business to protect nature while causing no unnecessary harm in the process.
So they ran the following ad to send a message.
It was a clever bit of marketing, and stood to reinforce what the company is all about.
They don’t want their customers to buy a new fleece every year, even though that would juice profits. They’re perfectly fine filling that need once it arises, but are you sure the one you have doesn’t just need a touch-up?
At some point, people have all the jackets they need. At some point, they have all the money they need.
At some point, there has to be enough.
That’s really the fatal flaw of Western capitalism, isn’t it? Once you’ve got a milli, you need a hundred more.
Then you gotta get a “b.” Who wants two sh*tty f*cking commas??
Chouinard famously hated being on the Forbes billionaires list, which was part of the impetus for giving his whole operation away.
To him, every billionaire is a policy failure. While that feels a bit too all-encompassing to me, it’s damn refreshing for someone with that kind of coin to come out and say it.
And, speaking of fleece, don’t forget the vest phenomenon.
Finance bro tears were raining when Patagonia pulled its co-branding from hedge funds and the like, claiming the financial industry doesn’t reflect its values.
Only the truly elite brands can pull stunts like this off, actively rejecting sales that reinforce why people are fans of their stuff.
For every Chad that Patagonia no longer outfits, they’ve gained even more support from their already-rabid fanbase.
So how did this unassuming climber build a company with three commas in sales per year while maintaining a sterling reputation?
Yvon is not like you and me
His passion for what he does and skill to build a billion dollar business is highly unusual.
Most of us prefer to put in our time during the week and kick back on weekends rather than obsess over creating the best possible product.
Even most of those that #riseandgrind and worship Gary Vee don’t have what it takes to build that kind of behemoth.
In this way, Yvon is cut from the same cloth as Elon and Bezos. All three built businesses with legions of fans that proclaim to be better off because of their products.
But usually what comes with that insatiable desire to achieve is an ego that mirrors the bank account.
As one grows, the other follows.
Eventually, most of these aliens reach a plane where nobody around them has the ability to push back on their far-flung ideas. Sometimes they quickly realize the pitfalls of that arrangement.
But Yvon has managed to hang on to his roots as a climbing bum who always saw business as a way to help preserve the beautiful areas he spent his life exploring.
Even his rags-to-riches story isn’t unique! Billionaires that grew up on food stamps are American heroes, allegedly embodying everything about the now-chastised American Dream.
But the money, for all the consumption that it enables, seems to consume them in just about every case.
Where Yvon is truly one-of-one is his blend of business savvy AND lack of ego AND deep respect for the planet and its future.
He isn’t the first to do something like this, but the other prominent example, Barre Seid, enjoyed huge tax benefits and plowed most of the proceeds into conservative political orgs. It was also self-serving in that it put him on a pedestal in the Republican party.
Yvon is built different.
He undoubtedly will gain even more sway in conservation circles, but he’s never been the type of guy to put himself at the center of attention.
In his mind, he won capitalism, kept for himself only what he needs to be happy, and will “use the wealth Patagonia creates to protect the source of all wealth.”
Truly exceptional.
The move hasn’t come without criticism
Yvon and his family stand to save big time on taxes from the donation, which some say increases the tax burden on everyone else.
I guess you can make that case after several contortions, but based on this guy’s lifestyle, you can’t say it’ll fund conspicuous consumption.
If he’s paying less in taxes, but that money’s going towards philanthropy, all good with me. Damning this move as a tax dodge for personal gain doesn’t jive with Yvon’s lifestyle of beat-up cars and raggedy clothes.
Obviously we all need roads and bridges and need to share the burden on taxes. Patagonia will still have to pay corporate income tax, by the way.
Having said all that, isn’t this pretty much optimal capitalism?
Here we have a guy
- With unique capabilities to build exceptional products
- With the opportunity and incentive to spread them far and wide
- That acts responsibly while doing so
- That then returns a large chunk of the spoils to the greater good
The glimmer of hope I’ve been holding for an economic future within ecological and social boundaries got a bit brighter this past week.
So thank you, Yvon, for proving that this flawed economic model can work.
And for the awesome products, which I’ll continue to buy.
