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Posted by throw0101b 4 days ago

Jack Welch, the Man Who Broke Capitalism (2022)(www.forbes.com)
122 points | 97 commentspage 2
fsagx 4 days ago|
https://archive.is/Lq7Bu
bawana 4 days ago||
By his logic, he would replace most humans w machines and ai. Can you see a world of ‘bezos,musks,trumps’ types protected and provided with their machines while they despoil the flora and fauna of the earth. Economies of scale fail when scale becomes very large.
roxolotl 4 days ago||
As a typical American teenage boy I had a bout of libertarianism in high school. Atypically however it ended with my reading of Atlas Shrugged. Somehow my take away from the book was that clearly there are limits to selfishness and there’s a point at which everyone is dependent upon the systems they live in. Real selfishness is largely selfless. It just felt so much like a childish fantasy that I took away something I suspect Rand would be upset about.

Regardless I say that to say it bewilders me how easily we, well mostly Americans, fell into this trap of believing that most humans are unnecessary and all that matters is skill at amassing capital. After a certain point not only does the economy of scale break down the whole system collapses in on itself. I’m sure they’ll have a great time pontificating and self aggrandizing in the Gulch while everyone else is doing the real work of rebuilding.

9rx 4 days ago||
> I say that to say it bewilders me how easily we, well mostly Americans, fell into this trap of believing that most humans are unnecessary

I suppose in hindsight they have a point. So much human effort is merely discovery that, if perfect information existed, really would have been pointless and unnecessary. Those who land into the right information, even if only by dumb luck, end up amassing capital as a natural consequence, so to the outside observer such people appear to be the "chosen ones" who have it all figured out.

This doesn't end with economics. In general, those who are deemed to not have the right information tend to be ostracized. To be wrong is the greatest sin a person, at least an American person, can make. This was particularly apparent during the high tensions of the COVID pandemic, where great friendships were lost when the parties involved couldn't agree on who had the right information.

The flaw in all that, of course, is that perfect information doesn't exist. I suspect the idea that it does was fuelled heavily by the college marketing campaigns of a several decades ago — that which also brought us the idea if you don't get a degree, you'll be forever stricken to flipping burgers at McDonald's — selling the idea that perfect information is available if only you choose to accept it. But, before you get your panties in a knot, let it be emphasized that my suspicions could be wrong and that's okay. Perfect information doesn't exist.

al_borland 4 days ago|||
How did Trump get lumped in with Bezos and Musk? Trump was arguing to keep coal plants open for the jobs, and before politics was mostly in the luxury service industry where a robot server would be rejected outright.

Did I miss where he was pushing for the robots to take over?

bigfishrunning 4 days ago||
I think you missed orange man bad, bad rich people all same bad, BAD!
NaOH 3 days ago||
Related:

A Man Who Broke Capitalism – Did Jack Welch Destroy Corporate America? - https://news.ycombinator.com/item?id=33416436 - Nov 2022 (20 comments)

A Man Who Broke Capitalism: How Jack Welch Gutted the Heartland - https://news.ycombinator.com/item?id=40838966 - June 2024 (3 comments)

mizzao 3 days ago||
> The book covers 80 years—from the moments right after World War II and the way companies were behaving back then. This was the “golden age of capitalism” all the way to the highly unequal society we live in today.

Can someone summarize how companies were behaving in this golden age, or what characterized them?

josefritzishere 4 days ago||
"The book demonstrates how this shareholder maximizing version of capitalism has led to the greatest socioeconomic inequality since the Great Depression and harmed many of the very companies that have embraced it." That's got some zip.
camillomiller 4 days ago||
The fundamental problem I have with this analysis is that it won’t consider a simple assumption: Jack Welch was just better at the capitalism game than others. He didn’t rewrite the written rules, he just didn’t care about the ethic-based unwritten ones. With the decline of historical ideologies, hyper-individualism took over. Welch was just very good at understanding that some invisible boundaries didn’t apply anymore, and that the zeitgeist was shifting in that direction.
pyrale 4 days ago||
The invisible boundaries did apply, and they still do. The story isn't that he saw that some rules no longer applied, it's that he was willing to go to war about it.

Post WW2, we had gradually managed to build a less violent society, and at some point, some CEOs decided: "You know, the Ludlow massacre and the Bisbee deportation were not that bad". And now, we get the pushback, where some employees think that murdering a CEO in the middle of Manhattan is fair game.

Rules didn't disappear. But people are more willing to go to conflict about them.

tpmoney 4 days ago|||
> Post WW2, we had gradually managed to build a less violent society

This feels like a whitewashing of a lot of post WWII history. That “less violent society” included the Korean and Vietnam wars, multiple assassinations, civil rights riots, the Kent State massacre and the Cold War.

Was it that society was less violent or that we became more diverse in our ability to commit violence?

pyrale 4 days ago||
I'm not saying post-WW2 society was non-violent.

I'm saying prior to WW2, sending the army (or just any hired goons) to shoot at workers was a common way to handle a strike in western countries. I'm saying at the turn of 20th century, people in colonies had their hands cut for not meeting rubber quota. etc.

You are right to point out that things weren't (and aren't) perfect, but you'd be a fool to think that there was no improvement.

jandrese 4 days ago||||
> Post WW2, we had gradually managed to build a less violent society,

I don't think this is an accurate assessment. More of the violence was swept under the rug, but it was still there.

Post WW2 the US did well because a lot of old incumbent industries were disrupted by the war and swift technological advancements in many areas that opened up a lot of opportunities for scrappy startups. Also, the baby boom meant the workforce was skewed young and entitlements were not a major factor in the economy. Finally, the US had a federal government that was willing to tax the rich and not yet fully infiltrated by moneyed interests as well as an independent news media. Well, more independent than today's news media at least.

The primary problem with capitalism is that once you accumulate enough money it is easy to create a feedback loop where that money creates more money with little to no input on your part. This causes money to accumulate at the top where it has nothing to do but make more money. The primary advantage of capitalistic economies is that the power is pushed down to the edges closer to where the information is, but when allowed to run unchecked that advantage is lost as the power accumulates at the top, just like a command economy. This is why it is so important to tax the rich and to avoid creating billionaires, they can't efficient spend the money they have for the same reason communism doesn't scale well: the information bottleneck.

dboreham 4 days ago||
Also smoking ensured there were relatively few old people. The "end" of smoking shouldn't be underestimated as a factor creating our present day economic problems.
salawat 4 days ago|||
Welch in his early career was kept in check in part by Oldtimers who were alive for the experience of the time of the Robber Barons, and the heyday of the American Labor Union. These times were characterized by men willing to do violence to break strikers and likewise to coordinate to make it nigh impossible for the more narcissistic to ascend to power due to actual class solidarity.

Welch wasn't a problem until what he feared, backlash from people who had been around for the last cycle of cruelty precipitated by his ideas, sufficiently died/attritioned out.

Give Going Postal: Rage, Murder, and Rebellion: From Reagan's Workplaces to Clinton's Columbine and Beyond by Mark Ames a read.

He does an excellent job at laying out the pedigree of thought from slave/plantation management to modern American management theory, and charting out the trends and consequences that arise from political shifts in the equilibrium between capital and labor.

https://www.amazon.com/Going-Postal-Rebellion-Workplaces-Col...

bryanlarsen 4 days ago|||
Jack Welch destroyed GE. He wasn't good at capitalism, he was perniciously bad at it. He destroyed hundreds of billions of dollars worth of capital in return for hundreds of millions worth of personal gain.

What he was good at was exploiting the system for personal gain.

fossa1 4 days ago|||
> Welch was just very good at understanding that some invisible boundaries didn’t apply anymore, and that the zeitgeist was shifting in that direction

Agreed, Welch didn’t invent shareholder primacy, but he industrialized it. What makes him so consequential isn’t that he played the game better, but that he normalized a playbook that treated human capital as expendable

petesergeant 4 days ago|||
> very good at understanding that some invisible boundaries didn’t apply anymore, and that the zeitgeist was shifting in that direction.

Sounds like Trump, for better or for worse

elcritch 4 days ago|||
The ethic based unwritten rules are actually required to make capitalism sustainable long term. If you don’t have those foundations capitalism will turn into oligarchy and eventually feudalism.

What many free market advocates don’t seem to understand is that free markets aren’t actually a default but require the right environment with certain government regulation and societal norms.

Folks like Jack Welch and Milton Friedman helped diminish those conditions. Now after 4 decades we’re seeing the results.

camillomiller 3 days ago||
Don’t forget Reaganomics
otikik 4 days ago|||
You are using too many words to say "psychopath".
_DeadFred_ 4 days ago||
I've said it before on here, but in the 1980s even a coked out corporate raider couldn't say the things the 2025 pro-technocapitalists routinely say without being ostracized from society for being a psychopath. People used to see other people as actual people, not disposable work units.

Think Warren Buffett style billionaire versus Elon Musk style.

bryanrasmussen 4 days ago||
>he just didn’t care about the ethic-based unwritten ones.

what a man! Sorry, but while I claim no great ethical or moral standing myself I do dislike anything that smacks of applauding their absence in others.

camillomiller 3 days ago||
Applauding? LOL who is doing that? A person like Welch should be in jail
Stevemiller07 4 days ago||
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bux93 4 days ago|
Today's CEOs have moved on to what's important: future metrics. The benefit of future metrics is that they can be plucked out of thin air and recycled, like the amount of years until your cars will drive themselves or the projected revenue from A(G)I.
tuesdaynight 4 days ago||
I agree with your point, but it's kind of ironic that you are answering a post made by a bot. From all the bullshit projections that tech CEOs made, the internet becoming full of bots is not the one that I expected to happen so fast.
baxtr 4 days ago|||
Maybe a stupid question: how can you know this was a bot?
SoftTalker 4 days ago|||
Account created very recently and the comment reads like a line in a USA Today article.
dgfitz 4 days ago|||
user: Stevemiller07 created: 1 day ago karma: 3 about: I am an agency owner, i have multiple clients needing ai agents
Cthulhu_ 4 days ago|||
I did, at this point 20 years ago it was already said that more than 90% of e-mail traffic was spam, and around that time a lot of anti-spam measures were already set up in things like comment sections and forums and the like. The battle hasn't stopped since then.
black_13 4 days ago|
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