Tuesday, October 2, 2007

How to Make US Business More Competitive?

Q. Dear Professor Langbert,

I really enjoy the feedback you supply at the end of the forums. I have one question for you- what can be done to "save" U.S. economy, and provide decent jobs for everyone?

A. In my opinion there need to be 6-7 reforms:

1. Reform the education system. Make sure that all elementary students have good training in the three r's as well as socialization and interpersonal skills. Use objective testing and tighter management of elementary schools to motivate such outcomes.

2. Stablize the monetary system by adopting a fixed rule whereby money supply grows at the same pace as productivity times population or adopt a metal (i.e., gold) standard

3. Change the something for nothing mentality that has infected all walks of life, from Wall Street to MTV. The idea that manipulation, deception or luck is the chief ingredient that leads to success a problem. The TV show "Entourage" is as bad as the Jim Cramers
who scream for lower interest rates and welfare for the rich

4. Limit government to a smaller, fixed percentage of the economy than currently. This smaller percentage could not be changed except in times of emergency or war

5. As well, the companies need to became more careful about how they hire directors on the board as well as CEOs. Criteria for promotion and advancement need to be clearly articulated and revealed publicly, and the reasons for the promotions need to be publicly revealed. Hiring criteria at all levels need to be objective. The current fixation on college degrees needs to be either proven/rationalized or eliminated.

6. Companies need to do a better job of training, empowering and using incentives to motivate employees.

7. Adoption of HR strategies that motivate innovation and quality. Many manufacturing firms have focused on costs at the expense of quality.

1 comment:

socialhuman said...

How much do you think the current administration programs, presidential signing statements and wars have cost this country?
How can you still support a Republican party that has broken form it's ideals of smaller government into government for the economic elite?
I used to dislike Republican's social views but I respected their Economic views because at least there were based on facts and science but what we have now is a bunch of religious ideologues,corporate welfare advocates (I would say this now includes democrats),and non evolution believers. Why would we dedicate a whole week in the senate to Terry Schiavo, while the deficit and financial malfeasance grows.I don't think Hillary Clinton is the answer and if the most qualified person was allowed to run I would vote for Bloomberg, a person I think you would like.
Don't worry so much about unions, social welfare programs and focus against the real enemy.
P.s.
I also dislike Thomas Friedman, so there you go.