Welchism's Effects on Capitalism.

• Author: McKinley, Vern
• Position: Jack Welch

The Man Who Broke Capitalism: How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate

America--and How to Undo His Legacy

By David Gelles

271 pp.; Simon & Schuster, 2022

Nearly everyone who has grown up in the United States, and even those who grew up elsewhere, knows General Electric (GE) in some way, shape, or form. They may know the simple GE logo because it has a prominent place in their kitchen, emblazoned on a stove, oven, or refrigerator. They may have borrowed money from GE Capital at some point in their life, as the GE conglomerate once offered a wide range of financial services, including various forms of consumer credit. They may remember the long-time GE advertising jingle: "GE: We bring good things to living, we bring good things to life."

They may also remember GE's larger-than-life former CEO Jack Welch, who led the company from 1981 to 2001 and who passed away in 2020. David Gelles's newest book profiles Welch and critically examines his time at GE and the management philosophy Gelles calls "Welchism." Gelles is a correspondent on the climate desk at the New York Times and previously authored the 2015 book Mindful Work: How Meditation Is

Changing Business from the Inside Out.

GE before Welch / From the beginning of The Man Who Broke Capitalism, Gelles makes clear that he yearns for the bygone days of the mid-20th century, when there supposedly existed a kinder, gentler corporate model. He writes:

For the fifty years before Welch took over, corporations, workers, and the government enjoyed a relatively harmonious equilibrium. Most companies paid decent wages, employees put in their time, just about everyone paid their taxes, regulations were accepted as necessary safeguards, and the government invested in things like education and infrastructure. According to Gelles, in those days GE was befitting of the moniker "Generous Electric" because it was

part of the bedrock of the American economy, the culmination of nearly a century's worth of innovative engineering breakthroughs and careful financial stewardship. GE's scientists helped win the world wars, and won Nobel Prizes, too. The devices they invented and commercialized ushered in modern life as we know it, full of electrical conveniences and technological marvels. Not a fan / From the introductory chapter, Gelles makes clear his disdain for Welch and the actions he took at GE:

The changes he unleashed at GE transformed the company founded by Thomas Edison from...