#173: When workers cannot afford to spend

Not so long ago a middle-class income came from a single breadwinner. Then it took two breadwinners. Today even that is not enough. And this is before the latest recession.

Henry Ford so clearly saw the risks associated with low incomes that, to the horror of his fellow industrialists, he doubled the pay of his manual workers. What was he thinking? He simply wanted his workers to be able to buy the cars they were making!

How bizarre. And yet, if you hold down the salaries and wages of the middle and lower classes, while paying inflated executive bonuses, where will you find people with money to buy your products and services?

I find it amusing, and a little disturbing, when business leaders complain that people are not spending enough to boost the economy when the reason people are not spending is found in the short-sighted decisions of those same business leaders.

I miss Henry Ford.


I’m james@nonsenseatwork.com

Copyright: 2008 James Henry McIntosh

James can be heard on Public Radio, 88.9 FM WCVE, Richmond VA.
Monday - 7:19am and Saturday - 8:19am

#171: Expect more fear in the work place

Many unpleasant things can happen during a recession. Here’s one that I hope you won’t promote nor experience. More fear in the workplace.

During an economic upswing workers become scarce and thus more powerful. This means that the boss must put on kid gloves and make nice with employees.

But during a recession, jobs are scarce and workers lose power. Bosses become more powerful, the gloves come off and fear returns to the work place.

I know, I know. Fear is always present in the workplace. Only the degree varies. After all, being able to inspire fear has always been a useful management tool. For some reason, this skill has gone underground of late in favor of concepts like emotional intelligence and coaching.

And yet, as we all know, there are times when a good crack of the whip can work wonders. Ask me. I’m self-employed and some days I could do with a bit of the stick myself.


I’m james@nonsenseatwork.com

Copyright: 2008 James Henry McIntosh

James can be heard on Public Radio, 88.9 FM WCVE, Richmond VA.
Monday - 7:19am and Saturday - 8:19am