Corporate leadership lacking
The corporate response to weak sales:
• Lay off some workers.
• Freeze or cut wages
• Cut working hours.
• Shift more of the health care costs to the workers.
• Fight any increase in the minimum wage.
• Defer purchase of new equipment.
• Push politicians to cut corporate taxes, shifting more of the tax burden to the workers.
• Award the CEO a pay boost for his “bold actions in difficult times.”
Now repeat these actions by multitudes of companies and we get the mass of consumers (workers) with even less purchasing power so they still aren’t spending. The result is not surprising. It’s like the old saying, “If the prisoners don’t stop screaming, beat them some more.”
Unfortunately in today’s corporate world, there are almost no leaders like the 1920s Henry Ford who boosted his workers’ pay so they could afford to buy his Model Ts.
We lack a vigorous economy at least partly because today’s CEOs seem totally blind to the collective downside of their “bold actions.”