When Worker Productivity Goes Up & Worker Pay Goes Down - That Is Wealth Redistribution

[BeyondGeography]

5. I work for these types

and I can safely say that profit maximization is a pile of crap. No matter how high you jump, they want you to jump higher. When it becomes apparent that you can't jump any higher no matter how hard you try (the top line flatlines), they raid the business for "savings" and put it in their own pockets. Cut the salaries of hundreds/thousands of people to support the owners. Or do it the Bain way using borrowed money to convert still productive assets into ATM's for a tiny group of people, whose numbers are a fraction of what the enterprise actually can support.

And then they up the narrative ante by questioning our effort, which is another way of saying, watch out, there's a pile of young-uns out there willing to do what you do for half the price. Which, of course, is an old game. The reality is we still generate plenty of free cash for the owners, just not as much as they told their boards or their bankers there would be. Or not as much as they think they need for themselves.

I think more people are catching on, but it has taken forever, which is why I am grateful to whomever recorded Romney's 47% riff, which was both false and evil. The more people have an idea of what they're dealing with the more hesitant they will be to cede control.