Comments on: ROGERS & MCCAFFREY: In Defense of Business: Corporations Create Jobs, Employ Americans and Keep This Country Moving

By: Tim

Tim — Wed, 29 Jul 2009 00:48:29 +0000

Actually, that’s exactly what it means. “Price” is a measure of value in economics. You might not think they’re worth it, but the market does, and that’s why they get paid that much.

The problem with capitalism for some people is that it tends to pay people exactly what they’re worth instead of what someone else thinks they ought to be worth. I think this is a good thing. You apparently think that talented people will work for less than they’re worth. I understand that is false in principle.

By: admin

admin — Tue, 30 Jun 2009 03:41:01 +0000

Just because the job market necessitates the obscene salaries of CEOs doesn’t meant that the work they do is actually worth that much. Do they actually make more than they cost the company, at the end of the day? Not likely.

By: Tim

Tim — Tue, 30 Jun 2009 03:37:20 +0000

This trash spewing of corporatism is not capitalism, nor libertarian or liberating.

But I will say to other commenters that if you think nobody is worth those huge salaries and/or bonuses, I suggest that you start a firm and hire a talented management staff and pay them “modestly.” When nobody will work for you, cry to somebody else.

By: Michele Walk

Michele Walk — Wed, 17 Jun 2009 16:20:52 +0000

I have to agree with Sandra that the bonuses received by the executives is just ridiculous. If they had put all of that money towards tax cuts (say 10% for those making under $300,000), small/new business loans, and increased higher education loans and grants, our economy would be much healthier. For instead of putting a “band-aid” on failing businesses, we would be encouraging building the great minds and businesses of tomorrow. Those very same taxpayers who are getting laid off and feeling the crunch would have direct aid to make their lives and the economy better.

By: Sandra Dunn

Sandra Dunn — Wed, 17 Jun 2009 13:36:16 +0000

I believe your theory is quite right, but only have one comment. NO ONE is worth the amount of Bonus money the “big-wigs” were getting….NO One. I am also against this in pro sports ,movie actor, etc…..The amount these people are paid is totally ridiculous and should someway be CAPPED, if you will, for lack of a better term. The middle class is taking the brunt of these hard economic times , as I am one of them and feeling the pain!!!!!Thank you for listening.

By: politicizer

politicizer — Wed, 17 Jun 2009 03:49:41 +0000

Ian, corporate competition most definitely drives innovation. The best thing the Government can do as a “partner” is to get out of the way (for the most part) and let the consumers drive the market.

A few examples of how corporate competition propels innovation:

*Verizon vs. AT&T produced the fastest mobile network capability we’ve ever seen
*Apple vs. Microsoft has produced everything from videochat to the ipod
*Laptops were born out of IBM trying to capitalize on the business market
*Boeing vs Airbus has produced the fastest, safest and most advanced airplanes we’ve ever seen
*Competition among television and internet providers has led to more information at our fingertips than we ever thought possible – faster than we ever imagined

The Japanese auto industry is booming because their government allows their workers to be paid next-to-nothing, and then sell cars in the US for $30,000…something I know you’re certainly not fond of. GM et al tanked because it had a bulky business model and the average worker compensation of 70$ an hour. GM was not able to compete with Toyota and Hyundai simply because the two Japanese companies have a leaner business model with higher profit margins.

While corporations have put some small businesses out of work (Pizza Hut vs. Johnny’s Pizza, Starbucks vs. Main Street Coffee) the rise of corporate America has actually facilitated a small business boom – selling what corporate America makes. This is why 88% of incorporated businesses in the US are currently small businesses (accounting for nearly 20% of the jobs)

This post was meant to be a defense against the ludicrous line “Big corporate greed” and “High-flying CEO” lines we keep hearing thrown around on the news.

By: Ian Goldin

Ian Goldin — Wed, 17 Jun 2009 02:54:30 +0000

You’re right, government does not drive innovation or create the American dream. But neither does corporate competition.

In fact, big corporations mostly tend to put small business out of business.

Cooperation, not competition, is the only thing that will save us. Business, government, and society needs to work together to share ideas and stimulate innovation. Japan became such a large hi-tech exporter because Japanese companies worked together to share information, earning this collection of business the nickname “Japan, Inc.”

The Japanese auto industry is still booming. It’s too bad I can’t say the same about GM and the American auto industry.