If you read this article looking for new or surprising insight, you won't find it. It is not new information that Boeing started a rapid decline shortly after the McDonnell Douglas merger, and it will be unsurprising to you to hear that shortly afterwards, Boeing began abusing its most senior employees into leaving. What this article offers is new detail into exactly how Boeing has gone about cannibalizing itself. Th…
> It's worth reading, perhaps unless you're going to be flying on a Boeing plane anytime soon. This is all bad for Boeing, but at the end of the day, nobody has died on an American carrier in a Boeing plane in a very long time. Aircraft safety is layers on layers on layers. Let's not FUD people into thinking that flying on the worst plane Boeing has ever put out is anywhere comparable to the daily risks of driving.
What Boeing did to all the guys who remember how to build a plane
431–440 of 568 posts
Re: What Boeing did to all the guys who remember how to build a plane
#432Earlier quoted context omitted.
That’s nonsense. Markets are the best way we’ve come up with to allocate capital. Committees and commissars do not do a better job.
> Committees and commissars do not do a better job. Then why is internal governance and resource allocation inside companies done by committees and commissars and dictators, instead of by an unplanned free market?
Re: What Boeing did to all the guys who remember how to build a plane
#433FWIW, "Prince Jim" McNerney, who most of the article's ire is understandably directed towards, is no longer the CEO. He directed the 737 MAX's development, but retired before the scandals; his successor, Dennis Muilenburg (a 30+ year Boeing employee who started out in engineering), was fired for the poor quality of the 737 MAX despite it being developed under Prince Jim. That being said, the current CEO — Dave Calhou…
> the current CEO — Dave Calhoun — is an old exec from from GE, where McNerney started out From the article. > None of the names floated thus far for the spot have been aerospace engineers, and the shoo-in for the position, GE’s Larry Culp, is not an engineer at all. Maybe they should start bundling life insurance with flights on Boeing planes.
[1] Top CEOs have this degree:
Re: What Boeing did to all the guys who remember how to build a plane
#434Earlier quoted context omitted.
The companies are smart enough to learn from it. The problem is that in a late-stage capitalist market, companies have already grown so large that the easiest way to continue to grow profits is to cut costs as much as possible. It’s pretty obvious that in many cases, this incentive is entirely opposed to human health and flourishing. Sure, you can cut costs in consumer electronics like TVs without harming anyone. (As…
> The only way to counteract this frequently terrible incentive is by us people (the government) creating the incentives that work for society. That could mean huge, costly fines in these situations such that the only way to get money for shareholders is to make quality products, since what should be a market incentive has gotten so messed up. The US government could also get more aggressive about blocking mergers an…
Re: What Boeing did to all the guys who remember how to build a plane
#435Earlier quoted context omitted.
> the current CEO — Dave Calhoun — is an old exec from from GE, where McNerney started out From the article. > None of the names floated thus far for the spot have been aerospace engineers, and the shoo-in for the position, GE’s Larry Culp, is not an engineer at all. Maybe they should start bundling life insurance with flights on Boeing planes.
It's a strange anomaly when most of the current top Fortune 500 (US) companies have engineers as their CEO [1]. You would have expected that Boeing to be led by engineers due to the scale of engineering involved in the plane constructions but apparently it's not always the case. [1] Top CEOs have this degree: https://news.ycombinator.com/item?id=39680613
Re: What Boeing did to all the guys who remember how to build a plane
#436Earlier quoted context omitted.
I should add that our short term market-based approach to economic activity fails to produce appropriate housing outcomes, and that the approaches in Vienna or Singapore could end our homelessness crisis and make everyone happier. I recently read a doctor’s account of the homeless people who use the ER as a community space by complaining of minor illnesses, and it seems so clear to me it would be cheaper to give them…
>and that the approaches in Vienna Vienna's approach worked because it happened after WW2 when the country was bombed and broken, land, construction materials and labor were dirt cheap, so the state built over half the city's homes and turned them into public housing cheaply no problem. But fast forward to today where most of the land and buildings in a city are privately owned, how to you expect a city, any city, to…
It didn't though, they already started in the 1920ies! The most famous builing, Karl-Marx-Hof, started construction in 1927.
And they are building new public housing to this day, making use of inner city land that comes available from old factories, storage facilities, rail yards or alongside private construction projects etc. Other austrian cities do this too.
Agreed on the policy failure though.
Re: What Boeing did to all the guys who remember how to build a plane
#437>Boeing had come under the spell of a seductive new theory of “knowledge” that essentially reduced the whole concept to a combination of intellectual property, trade secrets, and data, discarding “thought” and “understanding” and “complex reasoning” possessed by a skilled and experienced workforce as essentially not worth the increased health care costs. So they devalued Wisdom, and Elders... and things fell apart. T…
Purging elder employees is the logical result of making the employer pay for the health care of their employees.
Re: What Boeing did to all the guys who remember how to build a plane
#438Earlier quoted context omitted.
That’s nonsense. Markets are the best way we’ve come up with to allocate capital. Committees and commissars do not do a better job.
The potential for benevolence of a market is lesser than an enlightened individual.
Re: What Boeing did to all the guys who remember how to build a plane
#439"But the average employee assigned to the 737 program has been at Boeing just five years, according to a longtime Boeing executive who is involved in various efforts to save the company; for comparison’s sake, he says the average employee assigned to the 777 program had between 15 and 20 years under their belt." It don't think it's possible to overstate how bad, and sad, of a state of affairs that is. I've never seen…
Something very similar is happening, at a very rapid pace, in software development.
Re: What Boeing did to all the guys who remember how to build a plane
#440Earlier quoted context omitted.
Purging elder employees is the logical result of making the employer pay for the health care of their employees.
No, it's only one incentive. Counterbalancing it is the value of expertise.