Wednesday, May 16, 2012

Consumers create jobs

Nick Hanauer's Ted presentation that explains it all.

In a capitalist economy, the true job creators are consumers, the middle class.  And taxing the rich to make investments that grow the middle class, is the single smartest thing we can do for the middle class, the poor and the rich.

hat tip Alltop

Jim Tankersley article

Tuesday, May 8, 2012

Power transference is illusory

Restaurant's use the visit of a famous or powerful individual to sell the idea that this place is a must visit. Everyone wants to associate with powerful beautiful people and wants to frequent locations where these individuals congregate. Everyone wants the feeling of the illusory power transference. The problem is of course that it not real. When a local sports team wins a championship there is little tangible improvement in the lives of the individuals in the locality however everyone feels a sense of belonging and a surge of power from the success of the surrogate team.

Robin Hansen explains:

“Illusory Power Transference” is the academic name for feeling powerful due to a superficial connection to a powerful person, such as having once been in the same room:

We propose that … associating with the powerful CEO suggests that he, too, must be powerful. Moreover, this minimal connection with the CEO would actually lead him to act as if he personally possessed more power when making important decisions on the job and interacting with others. ….
We use two experiments to … demonstrate that men who have a tenuous association with a powerful other (versus a powerless or equal-power other) felt more powerful and were more optimistic, confident, and risk seeking, even though they could not leverage the associate’s power. (more; HT Tyler Cowen)

Leadership sins

Mike Figliuolo reviews the seven deadly sins and how it impacts the people that make your life a heaven or a hell

If you’re in leadership role for the money, you’ve got it all wrong.  You’re responsible for the care and feeding of the people around you.  Doing it for cold, hard cash is the antithesis of being a servant leader.  Don’t get caught focusing on the raise, the bonus, or the corner office.  It will come back to haunt you when everyone on your team quits in search of a leader who cares more about them than they do about stock options.  Keep your priorities straight – if you lead well, the compensation will naturally follow.