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This is exactly what both the left and the right are propagandizing the middle class to do: lower expectations. In some cases, it means lowering our expectation
by api 14y ago
This is exactly what both the left and the right are propagandizing the middle class to do: lower expectations. In some cases, it means lowering our expectations to below those of our parents.
Think about that for a minute.
Find me a corporation or an entrepreneur who thinks like this. Imagine a CEO saying this to shareholders and the board:
"We didn't make our goals this quarter, and many in our industry also showed reduced sales numbers. It is clear that we need to reduce our expectations. Next quarter's numbers will be lower, and shareholders are just going to have to take a loss."
He'd be out on his ass the next day.
Related to this is the idiotic garbage that the working class are fed by the media: that they should hate people who make good wages and agitate to cut those other peoples' wages down to be in line with their own.
Again, find me a corporation that thinks like this. Apple is currently worth more than Microsoft. Is Microsoft thinking "how can we make them make less money?!?" No. They're thinking "How can we grow? How can we make as much money as Apple is making?"
Unbelievable.
You realize that you're being sold into fiefdom on the feudal "lands" owned by the financial industry, right?
Edit: I'm not a socialist. I'm a capitalist.
Part of capitalism is negotiation. The American middle and working classes have been fed this ridiculous line of baloney that capitalism is a magical hands-free machine that will elevate their standard of living if they do nothing. It doesn't work that way, as every businessman and entrepreneur understands. You have to negotiate. You have to push. They push, and you push.
Studies have shown that the ideal point in negotiation is often precisely where both parties feel a bit, but not too, unhappy. Right now the rich and corporate interests are rolling in it, happy as clams, and everyone else is suffering. That's because one side is pushing and the other side is not.
So how do workers and professionals (whom I count as workers... the white/blue collar distinction is increasingly meaningless) push?
The old way was unions, but that's definitely shown its age. We need some new ideas.
Lowering our expectations is not a particularly productive idea.
Edit 2: I also think using government to push is fair game.
Why? Because the rich and corporations do it. They take corporate welfare, bailouts, special infrastructure investments, government contracts, and benefit hugely from publicly funded R&D.
But they want you to refuse to use the government as a lever because... it works!
So capitalists really ought to be socialists, at least for now. Only give up a lever in a negotiation if the other party on the other side of the table also gives up that lever. The rich want you to be principled libertarians while they munch at the government trough.
- tacogordito 14y agoI can't help but nitpick. Companies lower guidance and expectations all the time. Share price almost always falls when this happen, but it's not uncommon and not cause for the CEO being ousted. https://www.google.com/search?hl=en&gl=us&tbm=nws&q=lowers+guidance&oq=lowers+guidance https://www.google.com/search?hl=en&gl=us&tbm=nws...
- tatsuke95 14y ago>"We didn't make our goals this quarter, and many in our industry also showed reduced sales numbers. It is clear that we need to reduce our expectations. Next quarter's numbers will be lower, and shareholders are just going to have to take a loss." Uh, they do say that all the time. I tend to agree with the other poster: our expectations are too high. It's a product of having witnessed one of the greatest runups in wealth (and debt) we've ever seen in history. A 2500 sqft house, two (or three) cars, regular vacations to Europe or the warm south, maybe a summer house, boats, motorcycles and other toys...these things are now expected by the "middle class". It's completely out of whack with history and the rest of the planet. So whether you choose to lower your expectations or not has no bearing on what will actually happen. We're going to have a deleveraging run where the average Westerner is, as a whole, poorer than the generation before us.
- JonnieCache 14y agoWhat incentive do we have then, to not forcibly extract that wealth from the previous generation? To me it seems that if we need to de-leverage, why on earth should we pay these people their pensions? All the intergenerational trust and good faith is already gone anyway. Note: the views casually related above may or may not represent the actual considered opinions of the management.
- tatsuke95 14y ago>"What incentive do we have then, to not forcibly extract that wealth from the previous generation?" We do have the incentive. And we will extract that wealth. But it takes time, since "they" currently have the political power. What you describe is what is happening in the real world. Reform everywhere so they get the pensions and benefits, but nobody after them will. This is happening both publicly and privately. Even unions are stiffing new members. We'll have the last laugh, though. Eventually the boomers will need to divest. At that point they'll find out we don't have the money to buy their assets.