Money Matters

[ysabetwordsmith]

I first saw this on Doug's computer screen, from the commentary essay "Money Matters."  This is the quote that caught my eye:

The truth is that while the proximate cause of America’s economic plunge was Wall Street’s excesses leading up to the crash of 2008, its underlying cause — and the reason the economy continues to be lousy for most Americans — is so much income and wealth have been going to the very top that the vast majority no longer has the purchasing power to lift the economy out of its doldrums.

Well, yes. I have been saying that for quite some time. But the person who said this version has served as the 22nd Secretary of Labor. You might ignore me, but he has all the fancy paper and experience to show for it. Of course the obvious is still the obvious: no matter what you try, 20% of the wealth can't run 80% of the economy. Further thoughtful details appear in "The Republican Shakedown," which explains how Republicans are digging in taxpayer pockets. The problem with a shakedown, though, is that eventually you get down to pocket lint. Working Americans are running out of pennies to fund the government, or anything else for that matter.

Comments

critical typo :-(

[mejeep.livejournal.com]

I intended to say: They ALWAYS claim that the president/CEO and board members REQUIRE AND DESERVE high pay and outrageous bonuses "to retain the talent". Again, it's an excuse for the top 5% to steal more money just 'cause they're rich and feel entitled to more and more ...

The Japanese have the right idea

[mejeep.livejournal.com]

here's a bit of encouraging news. Too bad no US folks will do it

http://www.cbsnews.com/stories/2009/01/28/eveningnews/main4761136.shtml

Japan Airline Boss Sets Exec Example

(CBS) A private jet is an American CEO's perk. But not the CEO of Japan Airlines. He comes to work on the city bus, CBS News correspondent Barry Petersen reports.

Merrill Lynch boss John Thain spent $1 million decorating his office.

Haruka Nishimatsu, the president and CEO of Japan Air, knocked down his office walls so anyone can walk in.

He buys his suits at a discount store, because a boss who wears Armani puts himself at arm's length from his people. "If management is distant, up in the clouds, people just wait for orders," Nishimatsu told CBS News through a translator. "I want my people to think for themselves."

And meeting his people means popping into planes, chatting with flight attendants, even sorting the newspapers. "I'd like to just find what is going on at the front line," he said.

All CEOs say that service is important, but Nishimatsu goes it a step beyond. He says that if you're having a bad experience, don't get angry with the people you're dealing with - blame the person in charge.

The person in charge here walks the walk. Look up, and there's the boss. Got an idea? Catch him at lunch in the company cafeteria.

His salary for running the worlds 10th largest airline: not millions, but one year as low as $90,000. When he was forced to cut salaries for everyone else, he also cut his own.

"My wife said, 'what?'" he said through a translator.

To him, a leader shares the economic pain.

"I feel close to him," said flight attendant Akiko Isobe. "It's encouraging."

These days all airlines are struggling. Even at reliably profitable Southwest, its time to tighten belts.

"It will not work if leaders treat themselves one way and employees another way," said Gary Kelly, the CEO of Southwest Airlines.

Nishimatsu says a CEO doesn't motivate by how many millions he makes, but by convincing employees you're all together in the same boat.

Now that's a spirit that could help survive the current economic storm.

Re: The Japanese have the right idea

[ysabetwordsmith.livejournal.com]

Agreed. This is the way to run a company. The CEO should be a brain inside the body, not a brain slug attached to the outside.