A Simple Approach to the “Big” Picture of Economic Theories and Practices Being Debated in America

What happened to economic values in America? The philosophy of an honest days work for an honest days pay seems to have faded from our memory. When did we begin to want what everyone else has…but not have the willingness to put forth efforts necessary to achieve our goals? America has always held the strong foundational belief that with hard work, education, and passion anything is possible. In America, we have the freedom of private enterprise, imagination, creativity, moral fiber, etc…WE CAN DO ANYTHING! We (America) are increasingly becoming a nation of re-distribution. We are being lead to believe that everyone prospers when wealth and benefits are dispersed evenly. Where did this come from? This is contrary to our belief system, our core values. We hear elected officials discuss how “fairness” and “equality” can only be achieved by eliminating the rights of some to elevate the plight of others…why? Is this fair to the ones who have worked tirelessly for years to move higher up the organizational chart? We are all individuals. We are all blessed with certain skills, talents, and abilities. You enjoy various activities that I may not care for. I enjoy activities which you may not be fond of. We should not follow the same mold, we were not designed that way. We were made differently by our creator; so why should we expect to be treated as everyone else? There are issues of discrimination and physical limitations, that I am not going to try to define or stress. There are laws (rightfully so) that address in great detail the above criteria. I am exploring specifically a “social” form of thinking versus the “capital” form we all currently enjoy (whether we like to admit it or not). I am going to begin to walk you through two scenarios involving your neighborhood grocery store. I feel that this is a good setting because of the impact it has on all of our lives. How many of us have worked in a grocery store in high school? We all shop at some form of grocery retailer periodically. We all have a basic understanding of the services provided by a grocery retailer. I am knowledgeable of this industry from the perspective of employee and management. I have also worked in this industry in an “traditional” environment and an “organized” union environment. I will for definition purposes define the “traditional” store the capital model. The social model will be represented by the “organized” store. Let’s Begin. EXAMPLE 1 You are managing a large grocery retailer with annual sales exceeding 30 million dollars. Scott, your Front-End Manager approaches you with a question regarding employee pay. Sam and Jan, both cashiers, make $8.25 an hour. Sam comes to work late frequently, calls in sick on occasion, and has been coached in writing about poor customer service twice in the past six months. Jan is always fifteen minutes early to begin her shift, she is always requesting more hours, and has received a service award for customer praise within the past three months. Scott wants to increase Jan’s pay by $0.75 per hour. What would you do? In the past we would have rewarded Jan with the raise, but is it fair to Sam to do the same job and be paid less? Traditional Store: I would give Jan the raise. Jan delivers far greater than Sam so why should he be treated the same? Top-performers, those meeting and exceeding well-defined business objectives, should be rewarded with pay increases, promotions, bonuses, etc… Organized Store: I could not give Jan the raise. All pay increases must be negotiated by the third party that represents the majority. I have to pay all employees equally by job category. I ask you now “is being equal always fair”? We should treat one person differently than the next! In the Traditional Store: The under-performing associate is penalized and held accountable for his actions. In the Organized Store: The over-performing associate is penalized and suffers unjustly because of the actions of others. Which store do you think will more likely turnover the talented and aggressive workforce? Which store do you think will develop associates with desired work ethics and behaviors favorable for success within any organizational field? EXAMPLE 2 Brett, your Meat Market Manager, approaches you with an announcement: Skip, his assistant has notified him that he will be leaving the store in two weeks to go into business for himself. Brett (being proactive) has developed his associates to be future managers with the company. He is well-known throughout the organization for recruiting and developing top talent. You inform Brett to post the opening internally for two weeks and interview all that apply. Three weeks later, Brett is back and says he has narrowed the job search down to two qualified candidates: Mike and Sandy. Mike has worked for the company for 13 years and is very interested in the promotion. Mike has never held a management role but expresses his desire for the challenge. Mike, however, has a habit of being habitually late and is known in the department as the “trouble-maker”. Sandy has worked for the company for six years. Sandy previously worked for your competitor as a Meat Market Manager. Sandy is always at work on time and is flexible with scheduling. Sandy was also honored as the annual “Employee of the Year” last year based on a set of measured criteria. Who would you choose to replace Skip? Traditional Store: I would advise Brett to award the promotion to Sandy. Sandy has not worked here as long as Mike, but her previous management experience and positive attitude make her perfect for the role. Organized Store: I would be required (by contract) to award the position to Mike because he has seniority. I ask you now “is promotion potential measured “equally” but, by years served ever fair”? How will the Union represent Sandy when she files a complaint of unfairness? The Union will be unable to do anything for Sandy. In the end, everyone except Mike loses. We should treat one person differently than the next! In the Traditional Store: The under-performing associate is penalized and held accountable for his actions. In the Organized Store: The over-performing associate is penalized and suffers unjustly because of the actions of others. Again I ask?… Which store do you think will more likely turnover the talented and aggressive workforce? Which store do you think will develop associates with desired work ethics and behaviors favorable for success within any organizational field? I have attempted to explore very briefly two scenes that illustrate “Equal is never Fair”. In all economic systems someone is always going to lose. Why would we penalize success by awarding the same benefits to those that are not willing to make the same required sacrifices? In a society where success is measured by hard work and rewarded as such we have innovation, we have advancement, and an entrepreneurial spirit that is beyond your wildest dreams. In a society where success is re-directed to everyone… why would I want to invent new things? In a society where success is re-directed to everyone… why would I want to start a new business venture? In a society where success is re-directed to everyone… what is my motivation to work harder than my peers to obtain a promotion, if I can never be promoted based on merit? Capitalism is not perfect, however capitalism has fathered the greatest creation of wealth in the last 100 years--than in the entirety of time past. The unfettered Human Spirit is unlimited in its potential…Let it Strive!