Monday, September 06, 2010

A Celebration Of Labor Day Part One - CEOs Who Fired The Most Are Paid The Most

Remember, none of the CEOs who are part of this survey actually created these companies. They didn't take any risks by creating anything. They didn't really do anything other than go to Harvard to learn how to be a professional bureaucrat. CEOs are simply administrators of companies. They are bureaucrats whose primary skill is living off of the productive assets in society. Just like Wall Street. Just like politicians. And given they think like bureaucrats, they are going to pay themselves handsomely for failure. Just like Wall Street crooks did when American taxpayers bailed out their systemic incompetence. Just like systemically incompetent Washington politicians are doing with the lobbyist bubble. Now being a bureaucrat isn't a bad thing. Every bureaucracy needs them. They were especially popular in the Soviet Union. Which, by the way, is beginning to look a lot like the United States with bureaucrats in business, on Wall Street and in Washington gaining unprecedented control without the consent of the people.

In Japan, CEOs who fire large numbers of employees are considered failures. In fact, one time when I was in Japan, there was a headline story of a embattled CEO at a major firm who committed suicide or seppuku because he dishonored his responsibility as a leader. Now that's a bit extreme but I'm simply making a point. Japan is far from a perfect society and has plenty of their own issues to work on but it is a society which has some modicum of concern for A More Perfect Union or the common good. And there is a code of honor in that responsibility. In the leaderless United States, Wall Street bureaucrats cheer mass layoffs because it fuels the profit bubble and their personal greed.

How do we minimize the number of bureaucrats and the impact of bureaucrats on society? That is a lengthy topic. The list is endless. But the most obvious way is to reduce concentration of power in business and in government - ban investment banking, mergers & acquisitions (In other words, send Wall Street packing permanently.), bust up large corporations and restore State's Rights as a bulwark against Washington idiots. How about make all news media nonprofit so the bureaucrat never gains control of our news. That way, anyone who wants to be in the news business is in it because it is a virtuous endeavor and a passion not because a bureaucrat is driven by power, greed and control. Incent the creators of capital to keep their businesses rather than sell them to the "investor class" where bureaucrats are then installed to run the organizations. If the private creators and founders are personally invested in the process of capital creation rather than allowing a bureaucrat to administer the company, the role of the bureaucrat is minimized. Or grab your favorite drink and just kick back and watch the bureaucracy eventually collapse as happens to every single major bureaucracy in history, without exception. There are endless ways to reduce the impact of the bureaucrat.

I think it's fair to say crony capitalism, or capitalism as its current """leaders""" know it, is just about dead. How did it die? Well, its """leaders""" killed it. In other words, it died from the inside. Just like Rome. Just like the Soviet Union. Just as any major bureaucracy run by bureaucrats for their own avarice and desires of control always does.

But hey, it's not so bad that the worst CEOs pay themselves the most. At least they were able to pay themselves handsomely for that new yacht while you grovel in the unemployment line because of their incompetence. It's the free market. It all works out in the end. You get dog shit for dinner and they get tea and crumpets. Well, that is, until those eating dog shit decide not to produce any more tea and crumpets. Then what is a bureaucrat to do?

Title link also here.
posted by TimingLogic at 12:02 AM

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