How Jack Welch Broke Capitalism - David Gelles, Author of The Man Who Broke Capitalism

[@camgere]

Nice explanation in the book of "Rank and Yank". 18:30 Layoffs aren't a desperation move to avoid bankruptcy. It is an ongoing process to pump up the stock price by publicizing routine layoffs (lowering expenses). The 10% of employees who are perceived to have the least productivity are laid off. Every year. Office politics and paybacks ensue. Hardly increasing productivity. Meanwhile senior executives cut deals with the board of directors (who represent shareholders) for millions of dollars in stock options (no losses if the stock goes down), salary and benefits.

[@Kitoulini]

A great topic...on the right path to bring back Capitalism with a human face.

[@kylewestaway]

Thanks.

[@zactianne6331]

Probably the most important topic of the day in America The Beautiful, a discussion between 2 intelligent Americans, and what have we got? 544 views and 4 comments, 2 of which are not in English--the American native tongue. I think we're screwed. And just when Welch started taking apart The Beautiful, other Americans helped China step onto the global trade stage. Fast forward 40 years, the Chinese have managed to bring 800 million people out of abject poverty and their leaders talk about modest prosperity for all. For all. For the majority. And as an American minimum wage earner, per Mr. Gelles, I'd be feeding my family on an income that has depreciated 75% compared with inflation. I no longer think it, I know it. We are screwed. Even the weapons manufacturers and our politicians of both parties will not survive the wars we're waging on ourselves and the rest of the world. But they don't know that. Yet.

[@kylewestaway]

I'm glad you enjoyed the discussion.

[@maori_brotha]

Great work David Gelles!

[@Baranoeda]

A very good conversation. I come from Sweden (yes... I know some Americans thinks we are commies) but we still have our thriving middle class, healthcare AND we have many great successful companies. It can be done. We call it social capitalism, or something like that.

[@ramanvk5523]

Jeff Immelt, Jim McNerney, Dave Calhoun, Bob Nardelli - 4 candidates who were short listed by Jack Welch to succeed - each went to lead a company and it will be a good study of what happened to those companies under the leadership of these people.

[@kylewestaway]

Interesting idea.

[@davelantz2318]

One word... FAILURE!!! I worked under Immelt's regime. Obama made him his Jobs Czar while he was shipping GE jobs enmasse to China, India and Eastern Europe.

[@MrBaixiong]

Bob Nardelli? The guy who almost put Chrysler in the toilet? For real????

[@davidderidder2667]

Interesting topics.

[@kylewestaway]

Glad you think so!

[@Kevindoylejones1]

Well done and a natural extension Kyle. Fix your lighting, btw.

[@kylewestaway]

Thanks. Working on it.

[@Superfoot]

When I read his book, after each paragraph, I just stopped and shook my head. Jack Welch was evil.

[@gregb7595]

Comes down to lazy, cherry picked boards. Not just the CEO. Think Enron , think WorldCom, ...and think GE. Members too overwhelmed to make informed decisions end up relying on the " recommendations " of the CEO and his minions.

[@kylewestaway]

Fair point.

[@edwardkierklo9757]

Why do Americans venerate corporate CEOs? Absurd idolatry. CNBC and celebrity co-dependent partners. The pathway starts with credentials from elite schools. Break this by eliminating legacy admissions