Thursday, November 18, 2010

CUTTING COST OF GOVERNMENT #1: How?

Several years ago I chanced to meet a fellow employee of Firestone. Jules, much younger than I, following the closing of 21 North American tire plants by Firestone and Goodyear, had taken a job with another firm in Mid-Ohio. He told me I had been a topic of conversation at his company.



Jules said his new company was perplexed at it's inability to achieve production goals. He said that Jack, who was one of my shift foremen, also an employee of the same company as Jules, told his management that he could tell them how to achieve their goals in short order. HE SAID TO HIRE WALT PIERCE.

When they questioned him about doing that, Jack told them to forget it as I had become a Stock Broker with Merrill Lynch and would have no interest in returning to Production Management.

The years have passed. Jack Petite was a great leader in his own right in and out of business. He had been a staff sergeant in the army in WWII. He died a year or so ago and the world lost a great guy. It was an honor to be so remembered by him.
Led by the Tea Party, Americans in their last election said they wanted their representatives to lower the size and cost of government. Like the above mentioned company, everyone is perplexed by how. I'll try to write a few blogs on how I might achieve this goal were I named "Manager".

As the elected leaders have in no way, matter, shape or form achieved the goal of the American people, I'd get their attention. I'D IMMEDIATELY CUT THEIR PAY AND TELL THEM THAT THEY HAD TO EARN THE RESULTING LOWER SALARY OR HAVE IT CUT FURTHER NEXT YEAR.

In 2008-09 Congress received a 16% pay raise at a time when the NASDAQ fell 8.4%. They did deny themselves a raise this year. BIG DEAL! In 2010 rank-and-file members of the House and Senate was paid $174,000 a year. The Senate Majority and Minority Leaders each receive $193,400. The Speaker of the House receives $223,500.

THIS IS IN ADDITION TO MANY, MANY PERKS. Can you say having your own military air plane at your disposal? Think of that!

The median wealth of the House of Representatives is $765,000, up from $645,503 the prior year. Representative Darrell Issa (R-CA) is worth $300 Million; Representative Jane Harmon (D-CA) is worth $293 Million; and Senator John Kerry (D-MA) is worth $238 Million. DOES WEALTH PREVENT PEOPLE FROM BEING A REPRESENTATIVE? Certainly not. It does beg to question their ability to understand life of the people.

Again, the first thing I'd do would be to make the income of THE PEOPLE'S EMPLOYEES,, and that is what the Representatives are, reflect their attainment of what the people want. I'D ALSO PUT THEM ON NOTICE THAT THEY HAD TWO YEARS TO GET THE JOB DONE OR BE FIRED.

Early in my 27 years as an Industrial Manager I learned that just as important as getting good people to work for me was the readiness to instantly fire those who couldn't hack the job. If the American people, as a whole, the employers of the Representatives, en mass called telling them to start their new Congress by cutting their own pay, don't bet against it happening.

Naive? Maybe but remember, WE ALREADY HAVE THEIR ATTENTION!

NEXT, I'D CUT THE COST OF DOING BUSINESS BY 10% IMMEDIATELY. No sweat! I've done that many times. There is always some fat everywhere, where the Representives are spending OPM (other people's money) there is mucho fat!

That's the next blog.

Stay tuned!

God bless each of us and God bless the USA.

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