January 24, 2016 No.1
https://www.facebook.com/mehtarahulc/posts/10153250393056922
A good question by Krishnaraj Thakor , and my answer
.
https://www.facebook.com/krish.lakod/posts/930514097033236
.
Question -----
.
( copied from somewhere)
.
Do you think the MBA degree is hyped up & highly overrated? I just don't understand how MBAs are adding value to the system/society/nation/world. I have never seen an MBA doing any kind of productive work, except for some great body language & generous usage of fancy jargons.
.
I mean, just think about it this way. Take a Soldier, Doctor, Engineer, Scientist, Musician, MBA grad and put them into a desert. A soldier would say he will stay at the edge of the desert & protect them from external threats. The doctor might treat those who suffer from sunstrokes in that hot desert. An engineer might build a house for all of them to stay. A scientist might invent different ways to filter the water (which is a very rare commodity in desert). A musician might keep all of them happy & entertained with his music. But what will the MBA grad do? One might feel tempted to say that he will “manage/administer” all of them in the desert and coordinate their activities. Really? For that do you really need an MBA? Even the Musician could have done the same, but can the MBA do the musician’s job? An engineer also could have “managed/administered” the system (Ask Microsoft why they had to appoint an engineer as their CEO), but can the MBA do the engineering task?
.
Something is not right somewhere. The basics itself is not right. I am not saying that the MBA degree must be got rid of. It is also another nice degree and it is always good to have as many choices for degrees as possible because colleges must also make money for a living. But if nobody including the MBAs knows what really they are doing, then how long will the system sustain with such hype for overpaid MBAs? It is not sustainable, and the day will not be far when MBA will be “just another degree” without the frills & fancies it carries today because we will eventually converge into a world which rewards value addition, but not colorful degrees.
.
Going forward, in the performance-oriented world, one would be appreciated & rewarded with very high salary (irrespective of his profession or college or brand) because he would be doing something which nobody else would be able to do or because he is doing something better than others, and not just because he has an MBA. The days of MBAs ruling the roost are numbered.
.
=====================
.
My answers
.
we should not label people as "overpaid" or "underpaid" based on their degrees. It should be based on what work they do and how much benefit their employer / society gets from their work.
.
MBAs are paid by private companies. So as a citizen, we dont have any moral rights to question how much their employers pay them. Unless, we show that their employers are getting undue benefits from govt
.
And if we think that X are overpaid (X = MBA , judges , MPs, IAS , IPS . lawyers, political science professors , journalists, economists, economics professors etc ) in black or white, then we need to show an administrative / economic setup where whatever jobs they are doing , gets done in same of better way at LESSER costs.. The burden of given design of such administrative / economic system is also on us. And then, later, the burden on IMPLEMENTING such system is also on us
.
Now ;lets come to MBAs.
.
The MBAs are paid by private companies and NOT by govts. So prima facice, we dont have rights to question how much they earn, unless we show that they are directly or indirectly siphoning govt money.
.
The private companies follows all the laws and pay taxes and with that, their responsibility to society ends, The private companies have to think of their profits. So if MBAs increase their profits, they need to pay them and pay them well. And if companies dont need them to raise their profits, then they wont be paying them.
.
=====
.
Now I will discuss MBA-types. MBA is ahochpoch degree. It ranges from highly technical field like logistics to mumbo-jumbo like sales and marketing, And it has fields like HR, which are not that wellpaid either. And it also includes Finance which is often very highly paid, and IMO is fraud, but many say that it is highly technical !!!
.
Now consider Finance MBA. IMO, much of money that finance people make is IMO due to power they have to manufacture money from thin air. I have studied mathematics behind derivatives , options, futures , bonds, shares etc and all that maths has no REAL basis. Maths in physics has REAL material items at bottom such as atoms, sub atomic particles, photons etc. Where as Finance Maths has NO real items at the base. The ONLY real base is banks' power to manufacture rupees. Take away this power, and ALL financial companies and all financial people will fall flat in 2-5 years.
.
The derivate trading companies and investment bankers make HUGE profits. They claim that all profits is because of their mathematical and analytical abilities to frame derivatives, investment banking deals etc. But often they lose. And when they lose, they depend on assorted banks for bailout. And when banks fail, they depend on central banks' money manufacturing for bailout. In addition, bank-owners have assorted laws which favir them over non-bankers, eg when a bank owns a forecloed house, the bank does NOT have to pay any wealth tax. Whereas non-banker who owns an unused house has to pay wealth tax. This increases bankers' ability to hoard land for a longer time. And like that, there are dozens of laws which favor bankers over non-bankers. IOW, all wealth that Finance MBAs earn IMO is from these one sided law-drafts and law-draft that give power to bank to manufacture money. And IMO not even one penny is from their merit.. But issue is --- can we create a bank administrative system which offers same services that they do, and costs less? Till then, mud slinging against finance MBAs has only entertainment value . We at RRG are working to create such banking system using RTR-RBI-Governor and "Citizens' Legal Tender" i.e. system where new rupee can be manufactured ONLY after over 51% citizens have explicitly agreed. Till such system or any alternative comes, and proves itself better than existing banking system, throwing mud on Finance MBAs is just entertainment.
.
----
.
Now lets come HR-MBAs,. HR involves information of several laws such as labor laws etc, And this is needed for any / every company. And so IMO HR MBAs have value. And many HR MBAs also keep a huge network of contacts to get staff that the company needs. Also, most HR MBAs are NOT overpaid. by any standard.
.
-----
.
.
And sales / marketing MBAs often get paid on sales etc they generate. So this payment is linked with output. So I wont call it overpayment.
.
=====
.
So summing up, we should not label people as "overpaid" or "underpaid" based on their degrees. It should be based on what work they do and how much benefit their employer / society gets from their work. And if one feels that X is overpaid, then till alternative Y which delivers same as X and charges less is made, his overpayment will go on
https://www.facebook.com/mehtarahulc/posts/10153250393056922
A good question by Krishnaraj Thakor , and my answer
.
https://www.facebook.com/krish.lakod/posts/930514097033236
.
Question -----
.
( copied from somewhere)
.
Do you think the MBA degree is hyped up & highly overrated? I just don't understand how MBAs are adding value to the system/society/nation/world. I have never seen an MBA doing any kind of productive work, except for some great body language & generous usage of fancy jargons.
.
I mean, just think about it this way. Take a Soldier, Doctor, Engineer, Scientist, Musician, MBA grad and put them into a desert. A soldier would say he will stay at the edge of the desert & protect them from external threats. The doctor might treat those who suffer from sunstrokes in that hot desert. An engineer might build a house for all of them to stay. A scientist might invent different ways to filter the water (which is a very rare commodity in desert). A musician might keep all of them happy & entertained with his music. But what will the MBA grad do? One might feel tempted to say that he will “manage/administer” all of them in the desert and coordinate their activities. Really? For that do you really need an MBA? Even the Musician could have done the same, but can the MBA do the musician’s job? An engineer also could have “managed/administered” the system (Ask Microsoft why they had to appoint an engineer as their CEO), but can the MBA do the engineering task?
.
Something is not right somewhere. The basics itself is not right. I am not saying that the MBA degree must be got rid of. It is also another nice degree and it is always good to have as many choices for degrees as possible because colleges must also make money for a living. But if nobody including the MBAs knows what really they are doing, then how long will the system sustain with such hype for overpaid MBAs? It is not sustainable, and the day will not be far when MBA will be “just another degree” without the frills & fancies it carries today because we will eventually converge into a world which rewards value addition, but not colorful degrees.
.
Going forward, in the performance-oriented world, one would be appreciated & rewarded with very high salary (irrespective of his profession or college or brand) because he would be doing something which nobody else would be able to do or because he is doing something better than others, and not just because he has an MBA. The days of MBAs ruling the roost are numbered.
.
=====================
.
My answers
.
we should not label people as "overpaid" or "underpaid" based on their degrees. It should be based on what work they do and how much benefit their employer / society gets from their work.
.
MBAs are paid by private companies. So as a citizen, we dont have any moral rights to question how much their employers pay them. Unless, we show that their employers are getting undue benefits from govt
.
And if we think that X are overpaid (X = MBA , judges , MPs, IAS , IPS . lawyers, political science professors , journalists, economists, economics professors etc ) in black or white, then we need to show an administrative / economic setup where whatever jobs they are doing , gets done in same of better way at LESSER costs.. The burden of given design of such administrative / economic system is also on us. And then, later, the burden on IMPLEMENTING such system is also on us
.
Now ;lets come to MBAs.
.
The MBAs are paid by private companies and NOT by govts. So prima facice, we dont have rights to question how much they earn, unless we show that they are directly or indirectly siphoning govt money.
.
The private companies follows all the laws and pay taxes and with that, their responsibility to society ends, The private companies have to think of their profits. So if MBAs increase their profits, they need to pay them and pay them well. And if companies dont need them to raise their profits, then they wont be paying them.
.
=====
.
Now I will discuss MBA-types. MBA is ahochpoch degree. It ranges from highly technical field like logistics to mumbo-jumbo like sales and marketing, And it has fields like HR, which are not that wellpaid either. And it also includes Finance which is often very highly paid, and IMO is fraud, but many say that it is highly technical !!!
.
Now consider Finance MBA. IMO, much of money that finance people make is IMO due to power they have to manufacture money from thin air. I have studied mathematics behind derivatives , options, futures , bonds, shares etc and all that maths has no REAL basis. Maths in physics has REAL material items at bottom such as atoms, sub atomic particles, photons etc. Where as Finance Maths has NO real items at the base. The ONLY real base is banks' power to manufacture rupees. Take away this power, and ALL financial companies and all financial people will fall flat in 2-5 years.
.
The derivate trading companies and investment bankers make HUGE profits. They claim that all profits is because of their mathematical and analytical abilities to frame derivatives, investment banking deals etc. But often they lose. And when they lose, they depend on assorted banks for bailout. And when banks fail, they depend on central banks' money manufacturing for bailout. In addition, bank-owners have assorted laws which favir them over non-bankers, eg when a bank owns a forecloed house, the bank does NOT have to pay any wealth tax. Whereas non-banker who owns an unused house has to pay wealth tax. This increases bankers' ability to hoard land for a longer time. And like that, there are dozens of laws which favor bankers over non-bankers. IOW, all wealth that Finance MBAs earn IMO is from these one sided law-drafts and law-draft that give power to bank to manufacture money. And IMO not even one penny is from their merit.. But issue is --- can we create a bank administrative system which offers same services that they do, and costs less? Till then, mud slinging against finance MBAs has only entertainment value . We at RRG are working to create such banking system using RTR-RBI-Governor and "Citizens' Legal Tender" i.e. system where new rupee can be manufactured ONLY after over 51% citizens have explicitly agreed. Till such system or any alternative comes, and proves itself better than existing banking system, throwing mud on Finance MBAs is just entertainment.
.
----
.
Now lets come HR-MBAs,. HR involves information of several laws such as labor laws etc, And this is needed for any / every company. And so IMO HR MBAs have value. And many HR MBAs also keep a huge network of contacts to get staff that the company needs. Also, most HR MBAs are NOT overpaid. by any standard.
.
-----
.
.
And sales / marketing MBAs often get paid on sales etc they generate. So this payment is linked with output. So I wont call it overpayment.
.
=====
.
So summing up, we should not label people as "overpaid" or "underpaid" based on their degrees. It should be based on what work they do and how much benefit their employer / society gets from their work. And if one feels that X is overpaid, then till alternative Y which delivers same as X and charges less is made, his overpayment will go on
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