Sears CEO Proves Ayn Rand ‘Economics’ Fail Every TimePosted: 2016-12-30
Nothing proves the bankruptcy of libertarian principles as articulated in the world of Ayn Rand like Eddie Lampert’s Sears empire.
According to Bloomberg News, Sears is hurtling toward bankruptcy, mostly because Lampert pits executives against one another in a dog-eat-dog world intended to make them fight for resources and funding.
As you might expect, it doesn’t work.
Plagued by the realities threatening many retail stores, Sears also faces a unique problem: Lampert. Many of its troubles can be traced to an organizational model the chairman implemented five years ago, an idea he has said will save the company. Lampert runs Sears like a hedge fund portfolio, with dozens of autonomous businesses competing for his attention and money. An outspoken advocate of free-market economics and fan of the novelist Ayn Rand, he created the model because he expected the invisible hand of the market to drive better results. If the company’s leaders were told to act selfishly, he argued, they would run their divisions in a rational manner, boosting overall performance.