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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: Need some information||Date: 11/15/2012 2:03 PM|
|Author: WendyBG||Number: 408626 of 439549|
<Are MBA candidates required to have that part of their brain removed, that part that is necessary for logical thinking, as a requirement for graduation? >
I took MBA courses in 1979-1986. Since I was working full-time in NJ, I took night courses at Pace University in NYC. I took 58 credits out of a 64 credit MBA -- not finishing was one of the worst decisions I ever made.
The years I studied bracketed the gradual end of the great inflation of the 1970s and the collapse of American industry. My full-time job was industrial water treatment in heavy industry, so I watched as my customers in northern NJ shut down manufacturing plants that had been in operation for decades, throwing out thousands of manufacturing workers.
At the time, the teaching was that high inflation was normal. The U.S. would be fine as a "post-industrial" economy. MBA management courses taught how to calculate ROI before spending money internally on equipment and personnel.
I watched on the front line in horror as managers withheld maintenance funds from powerhouses because the ROI was too low.
I was horrified at the concept of a "post-industrial economy" because it was obvious that people wanted to buy things and that the U.S. would lose jobs but go into a trade deficit if these things were manufactured outside of our country.
I was also horrified that an accounting/ internal finance book taught that the job of a company's management was to increase the share price of the stock. There wasn't a word about customer satisfaction, improvement of product, quality systems, etc. or anything about increasing the long-term value of the company.
MBA students are not having their brain removed. They are being taught a distorted set of values by the economists who run the leading MBA programs (e.g. Wharton, Harvard) that direct the values taught in the books.
My predictions came to pass. The "post-industrial society" led to an explosion of the trade deficit.
The industrial workforce was gutted, though new manufacturing orders recovered due to the use of automation.
Weekly Hours of Production and Nonsupervisory Employees: Durable Goods is currently the lowest it has been since the end of World War 2.
Decades of MBA courses have taught managers that their job is maximizing corporate profits after tax. They have accomplished this task brilliantly.
So, you see, MBA courses do not remove the brain of the student. They do define the objectives of the future business managers.
Their objectives are so different than yours that it appears that their brains were removed. However, this is a value judgment. In fact, they have succeeded in increasing their own managerial compensation to unprecedented levels, while increasing corporate profits as they were taught to do.
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