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Instead of taking sides in violent disputes between unions and factory owners, Herbert Hoover pursued a third way: technocratic efficiency. He believed that by standardizing objects and processes, the economy could become so efficient that the resulting profit gains would render fights over small margins obsolete, placating both sides.
Arizona's support for TSMC's fab construction involved the governor's office mediating labor disputes over basic amenities like refrigerators and porta-potties. This demonstrates that executing grand industrial strategy relies on solving small, practical, on-the-ground problems for workers.
The success of agencies like the USDA in the early 20th century was driven by exceptionally qualified leadership. For example, in 1910, two-thirds of USDA bureau chiefs held graduate degrees in their specific scientific fields, a level of deep, technical expertise in management that is rare today.
By reopening a failed GM plant with the same union workers, Toyota demonstrated its management process alone could transform the worst-performing factory into the best. This proves the immense power of systems over just hiring "A-players."
CEO Larry Culp's successful turnaround of the GE conglomerate relied on operational fundamentals learned at Danaher. His philosophy of 'common sense vigorously applied' focused on implementing lean manufacturing principles, simplifying the business, and empowering employees on the shop floor, rather than complex financial restructuring.
Standards create a winner-take-all dynamic. Once a powerful entity like the post-WWII United States establishes its standard (e.g., the 60-degree screw), it gains momentum. Other nations find it is no longer in their economic interest to fight it; instead, they must quickly retool and adopt the dominant standard to remain competitive and integrated into the global economy.
Contrary to belief, standards and structured processes don't stifle creativity. As management expert Peter Drucker argued, standardization provides a stable foundation that handles the knowns, freeing up cognitive resources to innovate on the unknowns within a structured, less risky environment.
The professionalization of domestic agencies drew direct inspiration from the U.S. military. The key model wasn't combat arms, but rather the highly competent, civilian-like logistical branches, such as the Quartermaster Bureau, which solved complex, large-scale administrative and supply chain challenges with world-class expertise.
Anger directed at a group, like the wealthy, leads to ineffective violence. Lasting change, as seen after the Gilded Age, comes from identifying and fixing the specific, underlying economic mechanism that is broken—be it monopolies, labor laws, or an unbalanced budget. The target should be the system, not the players.
Successful agencies in the late 19th century followed a two-step playbook. First, they organized around a single technical vocation (e.g., engineers, doctors) to attract top talent. Second, they offered their expertise as a resource to states and universities nationwide, building widespread political support and proving their value.
When taking over the Commerce Department, Howard Lutnick cut 20% of the workforce (12,000 people) immediately. His rationale is that making deep cuts quickly and decisively removes uncertainty. It signals to remaining employees that restructuring is over and "the next shoe is not going to drop tomorrow," allowing them to refocus.