Today is a Good Day for Capitalism
August 17th, 2009Because of what’s happening in Chicago, today is a good day for capitalism. What’s happening in Chicago today? Based on what I’ve seen in the media, all Chicago city workers, with the exception of the police, firemen and paramedics, are having to take a day off without pay. Why? The city is out of money.
Am I wishing bad things on Chicago city workers or anarchy in the Windy City? No, absolutely not. I had a college roommate from Chicago and I love the city. However, every person and every organization must learn to live within their means. Unfortunately, Chicago’s leadership didn’t learn to live within its means, so the city, which put them in power, is paying the price.
What will happen now? My guess is that days like today (and there’s another two or three furlough days scheduled for 2009) will force the city’s leadership to start realizing they have limited means.
They can keep raising taxes, but it won’t likely raise any revenue as people and businesses will just move away. Hence, they, or someone who ultimately rises to power in Chicago, will ultimately learn that hard decisions have to be made. Money ultimately represents labor (more on this tomorrow) and they have to learn that they have a limited amount of labor.
It would be interesting to visit Chicago today to see if everyone in the city is taking the day off and going hungry. My guess is that everyone but the government employees is going about finding a way to do business as usual, without the thousands of bureaucrats. Maybe, just maybe, someone in Chicago will ask: ”Do we really need all these city employees?”
A couple of decades ago corporate America went through a gut wrenching “reengineering” period as corporations learned they couldn’t have 20 layers of management where 5 layers would do. Yes, it was painful for everyone involved, but corporations, shareholders and ultimately consumers benefitted.
Corporations had to look around and ask: ”What are our customers really willing to pay for?” At some point, the many layers of government will have to do the same. It’s unfortunate the government entities didn’t learn by watching; however, it’s near certain that they’ll have to learn at some point.
Capitalism thrives on efficiency improvements, which ultimately raises everyone’s standard of living. Now it’s time for the government entities to step up to the efficiency plate. And as they do, ever so slowly, you can bet that consumers, and ultimately the economy, will benefit. Yes, today will go down as a good day for capitalism.
7 Responses to “Today is a Good Day for Capitalism”
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Rod,
Another great post! As for the government stepping up to the efficiency plate, it doesn’t appear that that will happen — at least not at the federal level — any time soon. However, I agree that at some point the government will be forced to become more efficient at some point.
Health, Fitness — Darryl Pace
Fitness Product Review
Darryl,
Thank you for all of your great comments. Stay tuned, and please accept our best wishes for you and your children!
Thanks,
Rod
Rod,
It’s the nature of government which offers too little too late.
Back to J F Kennedy’s (?) statement: ” Ask not what the country can do for you, but what you can do for your country.” seems like apt for the current GFC (Global Financial Crisis”) or is the term now thought to be in history books already??
John Ho
Numerology Expert Birthday Numeroscope
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion
Interesting Rod. I hadn’t heard about these furlough days in Chicago.
Good to have you back educating me!
JJ,
No, the American press isn’t talking much about the furlough days in Chicago just like they aren’t talking much about the 77,000 state employees in Pennsylvania who have been seven weeks without a pay check due to that state’s financial woes. If something doesn’t sit well with the press’ ideology, they simply don’t print it.
Nevertheless, facts are stubborn things and they have a way of leaking out, just like the Fama-French stuff is leaking out and taking business away from Wall Street.
Stay tuned!
Thanks,
Rod
Hi Rod,
another super intriguing post.
I remember the gut-wrenching re-engineering of corporate America.
I would also venture to say that while initially excruciating for the employees who were laid off and who had formerly been inculcated unto that Big Corps would be there, work hard, stay at same co for 25 years, and you will receive a safe pension then found out that this was just another belief system and another mythology which would no longer true for all. That for them to be released to identify their real strengths and new purposes, that ultimately they received… freedom, liberty, and the liberty to feel to satisfaction and fulfillment.
Yes, we do not actually need all those government bureaucrats.
Happy Dating and Relationships,
April Braswell
Single Baby Boomer Dating Success Expert
April,
Thank you for all your comments and kind words. It’s good to hear from you. Stay tuned, as I’m going to improve my post consistency soon. Pam and I are still fine tuning our web site and I plan to go to my clients with it in the next couple of days.
Have a super day!
Thanks,
Rod