The Man Who Broke Capitalism: How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America-and How to Undo His Legacy

New York Times best-selling author David Gelles argues that legendary GE CEO Jack Welch is the root of all that is wrong with capitalism today and offers advice on how to right those wrongs. He chronicles Welch's campaign to vaporize hundreds of thousands of jobs, eviscerate the country's manufacturing base, and destabilize the middle class. Gelles also shows how Welch's emphasis on increasing shareholder value by any means necessary became the norm in American business, leading to the greatest socioeconomic inequality since the Great Depression and harming many of the companies that have embraced it.

Format: Paperback / softback
Length: 288 pages
Publication date: 20 July 2023
Publisher: Simon & Schuster

New York Times bestselling author and "Corner Office" columnist David Gelles exposes legendary GE CEO Jack Welch as the root of all that is wrong with capitalism today and provides advice on how to rectify those wrongs. In 1981, Jack Welch assumed the helm of General Electric and swiftly rose to fame as the first celebrity CEO. He golfed with presidents, mingled with movie stars, and was idolized for growing GE into the most valuable company in the world. However, Welch's achievements did not stem from some greater intelligence or business prowess. Rather, they were the result of a sustained effort to push GE's stock price ever higher, often at the expense of workers, consumers, and innovation. In this captivating, revelatory book, David Gelles argues that Welch single-handedly ushered in a new, cutthroat era of American capitalism that continues to this day.

Gelles chronicles Welch's campaign to vaporize hundreds of thousands of jobs in a bid to boost profits, eviscerating the country's manufacturing base, and destabilizing the middle class. Welch's obsession with downsizing—he eliminated 10% of employees every year—fundamentally altered GE and inspired generations of imitators who have employed his strategies at other companies around the globe. In his day, Welch was corporate America's leading proponent of mergers and acquisitions, using deals to gobble up competitors and giving rise to an economy that is more concentrated and less dynamic. And Welch pioneered the dark arts of "financialization," transforming GE from an admired industrial manufacturer into what was effectively an unregulated bank. The finance business was hugely profitable in the short term and helped Welch keep GE's stock price ticking up. But ultimately, financialization undermined GE and led to its downfall.

In conclusion, Jack Welch's legacy is a cautionary tale of the dangers of unchecked capitalism and the need for greater regulation and oversight in the corporate world. His relentless pursuit of profits at the expense of workers, consumers, and innovation has left a lasting impact on the American economy and society. While his achievements in growing GE into a global powerhouse are undeniable, his methods were unethical and ultimately led to the company's downfall. As we navigate the challenges of the 21st century, it is essential to learn from Welch's mistakes and work towards a more equitable and sustainable economic system.

Weight: 244g
Dimension: 139 x 212 x 20 (mm)
ISBN-13: 9781982176426