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Thursday, March 03, 2011

America's Problem

Actualy America's problem is at the management level. I need a new windshield, and I have insurance. So instead of me doing business with the glass shop, I call my insurance company. There are now 3 entities in the process instead of 2. The insurance company has me call a contractor they have hired to coordinate windshield repairs. They contracted out the business of managing windshield repair paperwork. Now there are 4 entities in the process. The coordinator company has me call a repair company, but it is the national office of the repair company. They take my information and have me call their local shop. Now there are 5 entities in the process. The local shop is the wrong local shop so I don't know if anyone is going to show up to repair my windshield on Friday or not. All those entities are getting paid along with their accountants and lawyers and tax guys and managers. The management inefficiency is tremendous, and a lot more expensive than the labor inefficiency. The productivity of American labor has been going up steadily for 30 years.


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