
Last week's New York Time op-ed by Greg Smith, a Goldman Sachs executive director, who resigned in disgust after 12 years (!) of witnessing the firms immoral activities, got a lot of attention and even some hilarious parodies.
But one bit of Smith's fair-weather farewell stood out for me:
"The firm changed the way it thought about leadership. Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an ax murderer) you will be promoted into a position of influence."
Sorry but this is mostly bullshit.
True there have always been selfless white knight leaders. But the big companies don't get to the top by being selfless. They get there by looking for every which way to obliterate their competition. They get there by lobbying (i.e., legally bribing) politicians to change laws in their favor, even if doing so screws average joes or the environment. They get there by rewarding their tiny cabals at the top while putting pressure on peons to be more productive. In short, they do what capitalism requires them to do -- survive at any cost.
Businesses, like tigers, can be majestic and powerful and beautiful to see out in the wild. But ingrained in both their DNAs is a nasty desire to smell weakness and rip your guts out. It's not Rupert Murdoch or Leona Helmsley or even Steve Jobs who's going to save us when the tiger gets hungry. They're riding the tiger, after all. What saves these companies -- and capitalism -- isn't this ephemeral "leadership" Smith pines for. What ultimately saves businesses from themselves is government. In other words robust regulations that keep businesses honest, even when they're tempted not to be.
After the recent and ongoing pain of the housing crisis and banking crisis, you'd think we would have learned. Yet American right-wing politicians in particular keep clamoring for less regulation and they seem to be winning. That is until the tigers rip our guts out again and conservatives fall to their knees and pray for some "leader" to save us.
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