The public sector can perform at its optimum if the private sector works well, and vice versa. If the public sector is able to maintain and increase its jobs, by employing teachers, construction workers, police and other types of public workers, more people are able to spend on products and services provided by private companies. Therefore, the private sector is able to hire more workers, thus increasing profits, while benefiting from the consumership from public sector workers. Pete Goodman’s analysis provides evidence that everything is connected.
“Only ideological silliness and political malice prevents us from using our government to improve our collective economic lot by guaranteeing increases in paychecks, the one thing that could make the phantom recovery a reality. When we fire a schoolteacher, we not only divest from educating children, we also take dollars out of the economy. We cut what that teacher can spend at the local coffee shop, at the stationery store and at the boutique (not to mention at the pharmacy and on the psychiatrist’s couch). When we hire schoolteachers, we add dollars that cycle through the system, and that prompts the private sector to hire more, recognizing a fresh influx of dollars that can be captured”.
The private sectors have a tunnel-visioned business model. They are more loyal to shareholders over their employees. This has created a problem. Actually, it should be the other way around. An invested interest in shareholders will work only in a short-run. Shareholders are far more interested in the bottom line. If a company underperforms, the shareholder moves on to the next company. Longevity for any company, extends from employee loyalty and interest. Employees have a long-term, lifelong, interest in the company that they work for. They want to move along, or move up, while working for the company. And they want to eventually benefit from their fruits of labor, by retiring from that company one day.
You see, the private sector does not benefit by short-changing the labor markets. It does not benefit from firing workers over satisfying shareholders. It is in their best interest to be more loyal to workers than shareholders. Henry Ford, founder of the Ford Motor Company is a perfect example. Henry Ford wanted to increase his employee wages so that his workers were able to buy his cars. Some of Ford’s ideals were not practical. However, this was a concept that actually worked. He believed that smart managers had an incentive to do right by their workers, because doing so would maximize their own profits. If a company is loyal to employees in the private sector, the employee will stand behind products, promote the product and increase the interest of both the company they work for, by standing by its products.
Employee disloyalty has led to consumer disloyalty. Consumer disloyalty increases the likelihood of short-term advantages for the company. If Consumer interest drops, profits drop. Privates Companies have created barriers to stay in business. If the private companies are only loyal to the bottom line, then they have withdrew from what made them profitable, initially. People first. This includes employees and consumers. Products are modeled after what people need and want. Shareholders respond to this type of validity from the people. But a lack of consumer trust and validity has hindered the livelihood of all private companies.The discardment of employees and people has created a domino effect; Both people and consumers are dispensable and interchangeable.
Many of our private companies have copied this model, while creating a habitat for a fickle economy. More people have lost their jobs due to the establishment of profit-before-people, that centralizes within private firms. Consumers are looking towards government to fix what private companies refuse to acknowledge. The government can only hire if they are stimulated economically by the private sector. Private companies have the ability to create new types of work via innovation and ideas. Thereby, stimulating the economy with newfound consumership. New jobs and consumer interest stimulates our government by creating additional revenue. This revenue can provide an entryway for jobs within the public sectors.
The public sectors is only part of the fix. Private companies have to come to terms with owning a haphazard business model. If they do not relinquish some of the value that they have in their shareholders, they will continue to leave a trail of angry people, disgruntle employees and dissatisfied consumers.