“Show me the incentives and I will show you the outcome.” – Charlie Munger, partner of Warren Buffett/Berkshire Hathaway
The Biden administration continues to set records — and not good ones.
According to the Bureau of Labor Statistics (who I assume showed up to work to give us these numbers), in November of 2021 a record 4.5 million Americans quit their jobs. And the numbers did not get any better in December, when another 4.3 million workers quit.
People are just sitting at home and watching TV, angry at the world. A Dallas fan got so mad at the Cowboys for losing in the playoffs that he took out his handgun and shot his television screen. Oscar Wilde said, “Art imitates life.” But in Texas, it often imitates Elvis Presley.
With “Help Wanted” signs up at just about every business in America, government has conditioned us to sit at home and be scared. There is no shame in being lazy anymore. Folks have been told by this administration that they are owed something. What happened to personal pride?
On the bright side, Maury Povich’s ratings are through the roof, and everyone has a personal injury attorney.
Those sitting at home seem to be doing well. I guess, in cities like Chicago, LA and Atlanta, there is a perfect time in your life to retire and spend more time looting with your family.
Folks in San Francisco have such a comfortable safety net that it has become a safety hammock. It is not like they have to make tough choices. If it is a decision between life’s essentials like food and shelter or getting the really cool tattoo or latest Gameboy, they seem to be opting for the latter choices. The safety net is so generous in California that even Californians are moving back.
Workers, even wealthy Democrats, are not incentivized to work. Bill Clinton is no longer motivated to work hard because there is no sex island for the rich elites to go to anymore.
My view has always been that workers need to own a piece of the company they work for. Now more than ever, business owners need to incentivize their workers with a piece of the action. The construct of “shared capitalism” is a good one. If companies cannot cut off their workers’ Netflix accounts to get their workers back to work, companies must put their key people in positions of ownership.
Capitalists know a fundamental truth that socialists and Democrats do not: A pie size is not finite. It grows, and when it does, those who make it prosper can benefit.
“It’s hard for the working middle class to build real wealth only from wages,” said Dr. Joseph R. Blasi, of the Institute for the Study of Employee Ownership and Profit Sharing.
According to the National Center for Employee Ownership, there are 6,500 employee-owned companies in the U.S. (think Employee Ownership and Profit Sharing). They employ 14.6 million workers, or 8.7% of the workforce. The structure works best among manufacturing companies, construction firms and professional services concerns — anywhere an employee can be incentivized to work harder. And the results can be quantified.
Right now, things are so bad that companies need their workers. Employees are in the best position in years to make demands. I went into Walmart after golf the other day wearing my blue vest. After I quickly navigated the self-checkout line, I was offered a regional manager’s position.
Becoming an owner-employee helps. The average income is 32% higher for workers aged 28 to 34 at companies owned by employees. Even more, a study by NCEO (National Center for Employee Ownership) said minorities at companies that share ownership with employees have a family net worth 79% higher than other families of color who do not share ownership with their employers.
Business partnerships usually work. William Procter & James Gamble founded Procter and Gamble, which I think monitors tests taken to learn how to bet on Draft Kings. I may have that wrong, but what I do know is that it was a great collaborative relationship that lasted for years, until Gamble married Yoko Ono.
I am not sure the Democrat House, Senate and Oval Office know much about business, just that owners are evil. Congressional members get their $185,000 salary no matter what they do and are protected under the Americans with No Abilities Act.