Anthony is Perplexed

On Feb 13, 2009, at 9:16 AM, Anthony wrote:

Toyota cutting executive salaries by 30%.

Meanwhile, US Bank executives are handing out "Cash Rewards", and asking that they not be called bonuses.

Was management always expensive in the US....in modern industrial history.

Anthony

No, not always as expensive... but the main factor driving usa int'l trade is management cost, the other factors are minor, negligible, or in the case of cheap labor, nonexistent. When clinton and congress capped exec salary at 1 million and put heavy taxes on corp that paid more, corps merely switched to stock options, which entirely changed the incentives and helped destroy our economy. Another example of do-gooderism going very bad. We need free markets.

Also note, recall when people said japanese workers and management have lifetime guranteed jobs (and how good or bad that was, depending on your point).. well, I was shaking my head then... and sure enough, they have lifetime jobs until they don't.

Management in USA got expensive after WWII when we were the victors, to the victors go the spoils... all that gold that went from south america into spain put spain into a 400 year decline... to the victors go the spoils... a double entendre?

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