CEOs Have Nothing to Fear But Fear Itself

I caught a blurb today regarding the Stuttgart Fastener Fair overtaking the National Industrial Fastener Show in terms of exhibitors and attendees.  It shouldn’t have come as any surprise; the United States has been following a downward industrial spiral for over a score of years and it’s finally revealing our weakness at the commodity level.  Who do we have to thank for our relegation into the second division?  None other than the chicken-poop CEOs who have created a non-competitive atmosphere that stultifies the creative advantage inbred into our unique society.

At the turn of the last century, industry leaders, such as Rockefeller, Ford, Vanderbilt, Carnegie, Mellon and the like, took it upon themselves to develop and execute business plans without concerning themselves with the legal ramifications.  Granted, their world contained fewer federal and local constraints, but they exhibited a conscious willingness to put business ahead of legal niceties.  Sure, there were run-ins with trust-buster politicians and government attorneys, but those were all considered to be part of the price of doing business.  All of that changed, starting with the 1929 Stock Market collapse. The resulting sweeping victory for FDR over Herbert Hoover allowed Washington to attempt to dictate to industry how to conduct business affairs.

There seems now to be a lot of hand-wringing over Big Government and the manner in which our entire structure is hung around it, like ornaments around a Christmas tree.  The dependence upon that tree is automatically assumed by the people who run the companies in our country.  That assumption is incorrect.  Business leaders should lead business, not follow a roadmap drawn up by lawyers who are intent on not appearing in court.  The FDR administration, for all of its clout, failed in numerous Supreme Court battles against businesses regarding work rules and practices.  Government cases for child labor restrictions, employee rights and minimum wages ultimately found favor with the courts, for the simple reason that those were correct applications of government oversight.  In cases where government attempted to enforce legislation restraining trade, many ended with a court victory for business.

So, what happened to the willingness of the business community to fight the fight and maintain the right to lead?  In my opinion, they did what we’re all prone to do – to follow that path of least resistance.  It’s easier to hire a well-connected lawyer and slink into the chambers of D.C. than it is to wage a public battle, even if the cause is worth fighting for.  What results from that method, the method that says we must ask the lawyers prior to proceeding, is exactly what we have now: a system of compromised potential conducted with an overarching fear of being on the wrong side of a judge’s decision.

My own motto has always been that it’s better to seek forgiveness than to seek permission. The people who lead the businesses in this country are advised to consider that the alternative is what brought us to our economic knees.  Next time your business creates a success opportunity; don’t ask the lawyers if it’s okay, tell them to make it so.