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CEOs need to pull the trigger and hire. When people have jobs — guess what? They spend. When people feel secure — guess what? The spend. They buy houses, take vacations, buy cars, and apparel, sporting goods, they dine out, and they buy things for their kids.
US corporations have created a “bottom of the pyramid” in the US. They’ve paralyzed the economy with their greed.
As the brilliant CK Prahalad said, you can’t rev a global economy by selling 5 more third vacation homes, or another Porsche. You WILL, however, rev an economy when you create and market products to the millions of people who need shoes, jeans, toothbrushes, laundry detergent and other basic needs.
The big problem is — the C suite is motivated by appearance of profit. They juggle the numbers, play with their spread sheets and make things look great so they make your bonuses. Middle managers run around like frightened lap dogs, hoping to curry favor of upper level management.
Corporations have zero incentive to create truly healthy organizations because management personally profits from the appearance of profit.
After all of this, they still haven’t learned their lesson.
And this is all Obama’s fault? Hardly.
Wall Street has ruined this country.]]>