With today’s Senate passage of the new public sector jobs bill, the federal government’s role in stimulating the economy is once again in the limelight. The use of public dollars to leverage jobs in the private sector is even more controversial. Historically (and today) U.S. business wants government to “get out of the way,” and let market forces determine outcomes (at least until they themselves need to be bailed out). The priority is “maximizing shareholder value.” The fewer workers you need to do that, or the lower their cost, the better.
Still, some worry that the axiom of maximizing shareholder value lately has been taken to a destructive extreme. One of those is Andy Grove, former CEO of Intel and still a consultant to the U.S. chip-making giant. In a recent interview in Business Week, Grove noted that U.S. business is “…largely oblivious to emerging evidence that while free markets beat planned economies, there may be room for a modification that is even better.” Read More »