Three Sigma Systems

The Naked Underbelly of Free Market-ism

During a recent Daily Show interview (10/16/08) , John Stewart asks Robert Reich, former Secretary of Labor, about the destination of the $750 billion dollars allocated by congress to save our economy. Reich gave two answers, both were simple and to the point.

1. The "official" line, is the money is necessary to reinvigorate banking institutions so that they can restore the system to "normal" operation.

2. The second and real answer is that the money is destined to go to the pockets of bankers and finacers in order to make them feel better about lending the immense wealth that they are currently hording, lest that wealth be diminished.

In short, the money doesn’t go to institutions, it goes to wealthy market manipulators so that they can refill their churns.

via videosift.com

At the root of W. E. Deming’s message and method was an obsession with creating value that would in turn create wealth. Toward this end, he admonished business leaders to stop thinking about profits and start thinking about how to create value in terms of product and service.

Here’s the rub. The logic of unfettered markets and unbridled competition is driven by greed and avarice rather the altruistic impulses of service to customers, employees, community and nation. While Wall Street was, and still is, obsessed with maximizing profit, Deming asked that we become obsessed with the task of optimizing the system by which we create real value!

Value = val·ue (v l y ) n.

1. An amount, as of goods, services, or money, considered to be a FAIR and suitable equivalent for something else; a fair price or return.