Inside every chief exec, there’s a Soviet planner | Business | The Observer. Macroeconomic central planning failed in the Soviet Union, but every company is a management planning factory.
If work is fragmented so that people have no direct line of sight to the customer, people have to be driven by signals from above rather than below.
An example from GE that illustrates the point:
Consider that the world’s most efficient large conventionally managed corporation, GE, spends 40% – that is, $60bn – of its revenues on administration and overheads. For every direct worker there’s an indirect one to check or “manage” the work.
If I save more money, will I kill our economy? – “Money still talks, apparently. I just happen to believe it speaks loudest when people are in control of it.” This topic made me think a little about alternative stimulus. What if interest on CDs was made tax-free while requiring banks to de-lever gradually? It may not have made a huge difference, but it may have created willing investors (depositors) in the banks’ survival.
Certainly, savings could be used for emergencies and would help float people in bad times.
Global recession – where did all the money go? | Business | guardian.co.uk. — This is an interesting look that takes each layer of the financial system and draws it as a proportionally sized circle, then demonstrates the unstable upside-down pyramid, juxtaposed with the “bailouts”.