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Wed Jun 12, 2013, 04:54 PM

We need CEOs to get to work

The Fed and Washington have poured money into the economy. Americans are eager for jobs and ready to spend. But too many CEOs are coasting rather than taking risks, starting new ventures and hiring people.

CEOs have been AWOL in this recovery. And it's about time we called them on it.

The Fed has poured money in. So has Washington. Money is as cheap as it's ever been. Consumer confidence is soaring. Housing has stabilized. The budget battles in Washington have quieted.

But through all the economic ups and downs and sometimes-debatable efforts, one big thing has been missing. That is CEOs willing to take chances, start new ventures and hire people. And that's why the recovery, on real-world measures such as jobs and wages, has been so disappointing.

Spoiled by record profitability, stagnant wages and investor interest in dividends and share buybacks, corporate executives have been coasting. They're underinvesting, resulting in the slowest rate of capital formation new machines, factories and equipment in at least the past 60 years.

If we don't want the recovery to die out, it's time for CEOs to man up. I use the slightly sexist term intentionally. You see, three of the CEOs who have stepped up are among the most prominent women in business today.


The money's there. Workers are ready

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Reply We need CEOs to get to work (Original post)
liberal N proud Jun 2013 OP
jtuck004 Jun 2013 #1
mbperrin Jun 2013 #2
Thor_MN Jun 2013 #3

Response to liberal N proud (Original post)

Wed Jun 12, 2013, 05:19 PM

1. Look at the job stats. They have been hiring.


To pass out french fries. Clean up hotel rooms. Put umbrellas in those little drinks. Oh, and a higher-paying IT job, making the average look a lot better.

Busy, busy, busy...

Look at the increase in the numbers of those who we term "working poor" over the past few years. They used to be unemployed.

If that's not progress, I forget what is.

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Response to liberal N proud (Original post)

Wed Jun 12, 2013, 05:56 PM

2. Yes, the stupid idea that any "manager" can run any company has brought

us to the current pass - play with money, rather than work with money to grow businesses.

When one company buys another, no growth occurred - in fact, usually, the "fat" is trimmed.

Well, when management finally comes to the end of the money games, they may have to find someone who actually knows how to do something. Hope so.

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Response to liberal N proud (Original post)

Wed Jun 12, 2013, 09:27 PM

3. Supply side stimulus never works


The article presupposes that throwing money at companies can have some sort of effect. One can not stimulate supply - no CEO is going to make more of the products that they are having trouble selling. If you have a factory and I give you a million dollars, are you going to put on a second shift? There's no reason to, you can't sell what first shift is producing. Instead, you are going to bury the money in the company, declare yourself a genius, and work with your board of director buddies to give each other huge bonuses.

The way I see it, CEOs are almost powerless to help this economy. They have to power to destroy it, but not to save it.

The thing putting the brakes on the economy is the obstructionist GOP, insist that supply side can work. If we can get rid of their ridiculous "trickle down" nonsense and stimulate demand instead, the economy will recover.

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