CAPITALISM
CEOs put profit first, and we all feel the pain
The explanation of capitalism according to commentary writer Dennis Carstens sounds like a version of the defense used during the Nuremberg Trials ("There's no crying in capitalism," July 17).
When confronted with the devastation caused by their actions, German officers said they had a duty to their leaders and were just following orders.
Today we are told that the destruction of industries and the devastation of the middle class are just "the way of capitalism," and that the CEO's ultimate responsibility is to owners, shareholders and profit -- not the greatest good of the nation. The generals of capitalism are just fulfilling their fiduciary duties.
Economic power in the hands of a very few, whose orders require capitalism's goal of shareholder profit first and foremost, can lead to widespread pain.
TODD EMBURY, RAMSEY
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Thanks to Carstens for reminding us what capitalism is (as if we had forgotten). He makes a valid point about the constraints the system imposes on CEO behavior. For the last 30 years or so, America's CEOs have felt themselves legally, ethically and morally obligated to maximize shareholder value by reducing labor costs in every conceivable way: through offshoring, outsourcing, right-sizing, synergizing, part-timing, union busting, reducing benefits and raiding pension plans.
They've been very successful. Investors have done well as a class, wage earners not so much. You might think that in a consumer-driven economy, enlightened CEOs would have foreseen a time when their businesses would begin to fail for lack of customers who could afford to buy their products.