Tag: CEO

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folly ideological culture national politics & policies political challengers too much government

Fiorina Fires Back

Fiorina, employment, HP, CEO, Hillary Clinton, Barbara Boxer, jobs, Presidential, collage, photomontage, illustration, JGill, Common Sense

Politicians love talking up job creation. Presidential candidates, especially, pretend to a Svengali-like virtuosity in producing paychecks and, if only handed the keys to the White House, creating — presto! — a bunch more.

This year, Republican Carly Fiorina, the former CEO of Hewlett-Packard, has been repeatedly attacked by Democrats, democratic socialists and her Republican opponents for firing 30,000 workers during her tenure running the company. As if she did so out of meanness.

Sunday, on Meet the Press, Chuck Todd went at her again.

“I find it very rich,” Fiorina fired back. “Barbara Boxer, Hillary Clinton, all the Democrats who are attacking me, they’ve never created a job, they’ve never saved a job, and their policies destroy jobs, including Mrs. Clinton’s latest position on Keystone Pipeline.”

Mrs. Fiorina offers context for her “failure”: “I led HP through a very difficult time. The NASDAQ dropped 80 percent. Some of our strongest competitors went out of business altogether, taking every job with them.” As she sees it, her team “saved 80,000 jobs. We went on to grow to 150,000 jobs. We quadrupled the growth rate of the company, quadrupled the cash flow of the company, tripled the rate of innovation of the company. And went from lagging behind to leading in every single product and every single market. I will run on that record all day long.”

I’m not endorsing Fiorina, either as candidate or as CEO. Just sayin’ that those attacking her on 30,000 jobs don’t know anything at all about actually creating even one real one.

This is Common Sense. I’m Paul Jacob.

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Fiorina, employment, HP, CEO, Hillary Clinton, Barbara Boxer, jobs, Presidential, collage, photomontage, illustration, JGill, Common Sense

 

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term limits

Market Power vs. Political Power

Critics of term limits on elected officials sometimes say: “You wouldn’t term-limit a neurosurgeon/fireman/[other indispensable professional] just because he’s experienced, wouldja?”

No. But I am capable of distinguishing between economic power and political power — between voluntary trade and policies imposed by force. It’s all about “opting out”: we are free to decline the iPad, but not Obamacare.

A study reported in Harvard Business Review suggests that CEOs who start out as dynamic entrepreneurs, responsive to market conditions, often grow more conservative over time. Commentators debate whether such waning of entrepreneurial vitality is inevitable. Sure, the Steve-Jobs-like exceptions loom large. Nevertheless, we can readily imagine a CEO stuck in the strategies of yesteryear.

My point, though, is that customers, shareholders and/or other company officers working within a market context can fix the situation when evidence piles up that the formerly right guy for the job is now the wrong one. Every day we hear of failed CEOs being ousted, failed companies closing their doors.

Au contraire when it comes to political incumbents. They often snag re-election despite widespread and intense discontent with their performance. (See the 2012 presidential and congressional election.)

I don’t worry when good persons must leave an elective office before doing all the good they can there. They can do good elsewhere too. I worry when politicians become entrenched in a seat of power for decades, becoming more and more inured to the consequences of their actions — and more and more brazen about assailing our wallets and freedom.

This is Common Sense. I’m Paul Jacob.