In this economy, the fortunate among us spend two-thirds of our days at work. So good businesses are constantly having to re-learn some simple truths:
- Happy employees are more productive.
- More productive employees make up more productive firms.
- More productive firms are likely to be more profitable firms.
So, how do you get happy employees? Here’s a top ten list (in no particular order):
1. Autonomy - People don’t more »
Do low prices cost jobs? In a new report from the hard-left group Demos, that's what we are supposed to believe. According to the report, the U.S. has suffered job losses -- specifically in manufacturing -- in no small part due to Wal-Mart’s (NYSE: WMT) extra-low prices and low wages. But the Demos report is an object lesson in poor analysis, bad economics and good old-fashioned Wal-Mart bashing. And more »
Crony capitalism or "cronyism" is finally becoming a household word. If you’ve never heard of it, cronyism is the practice of investing resources to secure favors from government officials -- rather than in creating more value for more customers. The effect of successful cronyism can be big corporate profits as measured by the balance sheet. But the costs of cronyism are almost always borne by customers, taxpayers or both.
Whether more »
Could a new private space race inject some dynamism into dinosaur defense contractors?
Without government largess, many companies wouldn’t exist at all. Specifically, because the U.S. government enjoys a virtual monopoly on military power, defense and military contractors live almost entirely on that big trough that runs alongside the Pentagon. Otherwise, aerospace companies have been suppliers to an $18 billion-a-year monopsony called NASA.
But that may soon be more »
I don’t care how environmentally conscious you are. At some point the numbers don’t lie. If you’re investment strategy is based in wishful thinking and pegging your hope of returns on crony capitalism and subsidies, you should expect to lose money. Green energy is a sinking ship and it’s time to find a lifeboat in some other sector.
Take a look at this from Sterling Burnett more »
If I were an investor of the bearish sort, I’d listen to Lao Tzu. And I’d put my money on “flow” businesses.
Kindly no comments about Galt’s Gulch on the sea. Please no snarkiness about tax havens and floating resorts for the ‘one percent.’ Yes, Blueseed will feature a barge 12 miles off the coast of California's Halfmoon Bay. But it's no Sealand.