Quote:
Originally Posted by Stormieweather
Unfortunately, none of that profit margin has been translated into increase paychecks for the workers, and our quality of life has decreased.
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GM decreased the man-hours from 120 to 70. Therefore profit sharing was reduced to near zero. Why? GM did not innovate enough. Their product prices increased relative to a free market.
Why? Because Roger Smith spelled the word "employe" in the tradition of Dan Quayle. Because top management blamed unions rather than the 70 HP/liter engine stifled by top management. A short list of the thousands of reasons why a GM car needed two or four extra pistons.
Your productivity can increase. But what did the competition do?
You produce a financial statement. So how does that make a factory more productive or create new products in Wal-Mart or Tesco? Is it the overhead we need so that finance people don't create more fiscal disasters? To your company, it is a 'product' that is so important. But to the economy, it is the unproductive overhead. The word perspective applies.
Productivity is also about eliminating overhead whenever possible. That also creates jobs (as demonstrated by telephone exchanges replacing operators with computers). But, as we know, if we eliminate overhead such as Securities and Exchange investigators, the consequences are disastrous.
Only you or your customers can report how important your job really is. But then that is when and why free markets work. Those who do the work should make decisions. Unfortunately business schools teach that people without any such knowledge should be paid more and make all decisions (also called communism). And so we have a massive recession and the resulting job destruction.
It will take years or a decade of innovation to create new and productive jobs WHILE we also pay for scammers who created Mission Accomplished, welfare for the rich, McMansions, Constellation Aries and Orion, Bernie Madoff, and other debts.