On 2/17/2011 10:54 PM, Steve wrote:

The economy -- buying and selling real goods adn services for real mony
-- has been replaced with the "financial economy", generating inflated
"value" for an asset. (How much air can you beat into a gallon of ice
cream before it becomes just air? Oh, sorry, you don't get a gallon
anymore -- the half-gallon has become something like 1.56 quarts, before
you even consider the added air.)

The final factor operating against a decent price for a US-made good is
executive compensation. The CEO makes 300, or 3,000 times the salary of
the working stiff? Till me how THAT makes us competitive, or,
ultimately, how we'll even be able to buy China's "China-priced" goods.

During WWII there was a secret government project to develop methods to
train "managers" to facilitate the ramping up of manufacturing for the
(still thriving) "war industry". Prior to that, company "management"
generally came up through the ranks, gaining a thorough knowledge and
understanding of the product, and the business, in the process.

Subsequently, and with the resultant advent of MBA programs (the basis
of which is that you really don't need to know much about a product to
"manage" the company that produces it), successful "management" has now
been subverted to little more than wielding tools like 'price point
engineering', "acquisition', and 'marketing strategy' to foist an
inferior product onto an increasingly stupid, easily manipulated
consumer (hint: does the picture of that hamburger really need to look
anything like what the consumer ultimately pays for/consumes, or even
has to contain the expected ingredients? ... not in the least!)

A true "manager" has the power to make an exception to policy to solve a
problem. Just try to find one with that power on the floor of a
corporate chain grocery store or retail outlet these days ... or even on
the phone for that matter.

Today's corporate management culture, focusing on bottom line first and
foremost (and ultimately, 'executive compensation'), has also arguably
(and successfully) insulated themselves from both the product and the
consumer, _by design_.

A neat trick, especially since you can get away with it ... but only for
a while.

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Last update: 4/15/2010
KarlC@ (the obvious)