How a Libertarian Used Ayn Rand's Crazy Philosophy to Drive Sears Into the Ground

[MrScorpio]

July 17, 2013 |

Eddie Lampert, the legendary hedge fund manager, was once hailed as the “ Steve Jobs of the investment world” and the second coming of Warren Buffett. These days, he claims the number 2 spot on Forbes’ list of America’s worst CEOs. He has destroyed Sears, the iconic retail giant founded in 1886, which used to be known as the place “Where America Shops.”

America now avoids Sears at all costs, thanks largely to Mr. Lampert and his love of twisted economic logic.

A bit of background: Lampert cut his teeth on Wall Street at the risk-arbitrage desk of Goldman Sachs under Robert Rubin, who later became U.S. Treasury Secretary and now serves as vice chairman at Citigroup. In 1988, Lampert founded ESL Investments and joined the billionaire's club at age 41. He rose to fame in the early 2000s for seizing control of Kmart during bankruptcy and then using it to take over Sears. Along the way he was kidnapped and deposited on a motel toilet in handcuffs for nearly 40 hours, and lived to tell the tale. Lampert is known for his touchiness and odd habits, such as conducting meetings from a bare bones room to Sears executives forced to tune in by videoconference. He hates flying.

You might say that Lampert is the distillation of the fervent market worship and wrong-headed economic approaches that came to dominate the U.S. in the 1980s and have yet to run their fatal course. He adores Ayn Rand, and is reported to have given out copies of Atlas Shrugged during an ESL annual dinner. Lampert is also a fan of Friedrich von Hayek, the Austrian economist beloved by conservatives and libertarians. As a Robert Rubin protégé, he absorbed the lessons of a man whose discredited economic focus on budget deficits ended up starving the country’s infrastructure, education and alternative energy.

Looking at what Lampert has done to Sears, we can see what happens when the lessons of his mentors are actually applied in the real world. It isn’t pretty.

http://www.alternet.org/economy/ayn-rand-sears-and-eddie-lampert?page=0%2C0

[Rex]

1. When you believe a dysfunctional world is utopia

you are promising the mosts vulnerable that they will pay the biggest price tag.

[Hydra]

2. This was an excellent read

And it points out a larger problem...where IS the cooperation in America these days? Why has competition been pushed as such a virtue?

The saddest thing about this Randian Era is that if we somehow survive it, people will eventually forget how toxic it is to everyone and we'll do it all again.

Proof? That we think corporations are our friends. Our Ancestors knew better.

[Jamaal510]

3. +1

"The saddest thing about this Randian Era is that if we somehow survive it, people will eventually forget how toxic it is to everyone and we'll do it all again."

Hell--we still have plenty of people who believe that Bush ll was a good president.