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All labor is marginal. It must be paid for out of marginal increases in cash flow. In the sense that labor doesn't meet its margins, there's a ... conflict. W
by ArkyBeagle 11y ago
All labor is marginal. It must be paid for out of marginal increases in cash flow.
In the sense that labor doesn't meet its margins, there's a ... conflict.
When you say "greedy upper management", please understand that 1) absentee management ( they're caretakers and not owners ) and 2) attempts to "improve" compensation in the past are what led us here in the first place.
One comes from mutual-fund style finance and the other from "CEOs make too much money" in the 1970s/1980s leading to performance-based compensation. Since the people who measure performance work for upper management, what could possibly go wrong?
- rsync 11y ago"All labor is marginal. It must be paid for out of marginal increases in cash flow." And that's the real message here - the big difference is not between one type of labor vs. the other. The big difference is labor vs. capital - do you have to work to make your money, or have you "graduated" out of labor to making money with your assets. Depending on your personal makeup, this can be either a curse or a roadmap.