US Economy Crissis in Management Study

In the beginning.

This is not a call for more regulation of the market place. Nor is it a call for less regulation of the market place. It is, rather, a call for more modesty and more honesty on the part of peddlers of comfort on the left and on the right of the political spectrum. I am calling for reform in all of the social sciences especially in economics and business. Let us give the end users of this product (i.e. academics pontification) a modicum of recourse, let there be some accountability in the market for ideas. Academic who wish to continue their intellectual auto-sexual activity are indeed free to do so at leisure and in private. It is when they expose their deeds to us, in the form of public policy advice, that they must be obliged to tell the whole truth or be liable for incompetence and worse. Incidentally, the author hastens to say that he is an academic economists and hence his criticism of them naturally applies to him.

It.
It is no exaggeration to say that the US economy has never blessed been with an appropriate management class. It started bad, with workers kidnapped as children from the streets of Europe during colonial days and sold into a lifetime of slavery in the colonies (no I am not talking about indentured service contracts). It continued on with ever weaker labor laws, and ever weaker consumer protection laws. All of this covered up by house economists singing the praises of a mythical market; praise that propagates the myth of self-correcting systems. There is no book or article in the academic literature that assigns the blame for economic failure to the arrogant invincible incompetence of the management class. Such reverence, recall the cheers that rose to meet: “what is good for GM is good for the US”, is born out of the labor management relationship that prevailed during colonial days and that continues to our day. It is the relation between master and slave with economists as the eunuchs guarding the harem and jumping for joy when a new master is born.

When the neoconservatives switched us from globalization to empire starting with the new millennium, they were acknowledging that US management class could not survive outside the Oxygen tent. What with actually competing with “them ferrners” for custom with no government holding the consumers hands behind the consumers back?. The only thing that made globalization work for the spoiled pampered incompetent managers, is that foreign lands did not enforce food and drug safety laws as rigorously as some parts of the US government did. But then two things happened: the US over the last 8 years quit being so picky about food safety and “ferrners” learned the art of selling us poison as food. So we switch to empires, but these are expensive and, history shows, are not publicly cost effective. Now what?

Pass a law that allows the public to sue economists and business school professors for damages due to incompetence. We do that for other professionals, so why not for these people?. If an engineer tells you that they have designed a car that uses no energy at all and you ask how? And they say that the design is based on the assumption that there is no friction. Then you laugh and leave the room. Behind the rhetoric used by most business school and economics professors is the assumption of perfectly working abstract markets that are constantly simultaneously at equilibrium. There should be a law.

In order for markets to “work” there needs to be recourse. If sellers harms buyer then buyer can fight back and seller faces consequences. If the buyer is dead or bankrupted due to the sale, then what do you mean: “recourse”.

In the business and economics writings, firms are eternal. They never are born nor do they die. Same thing with households. Financial constraints are as soft as soft can be, since no body is ever denied a loan and the only reason you work for others is that you find that to be more profitable than starting your own business. All you need to do to start up a business is go to the bank and show them your discounted net cash flow and they will hand over the cash. Remember that the only qualification you need to become a banker is to marry the spinster daughter of a banker who begot her by marrying the spinster daughter of a banker who begot her by marrying the spinster daughter of a banker who begot her by marrying the spinster daughter of a banker who begot her by marrying the ... We need help and helpers are too busy helping themselves to our food.