Krugman vs. Marriott
Prepare a 2-3 page paper using APA format discussing problem 1 in the
“Problems to Ponder” at the end of chapter 10. Be sure to address each
question in this problem. MUST INCLUDE 2 REFERENCES IN APA FORMAT (NOT
INTERNET REFERENCES).
PROBLEM 1:
Paul Krugman, Nobel economist at Princeton, states, “At the heart of capitalism’s inhumanity – and no
sensible person will deny that the market is an amoral and often cruelly capricious master – is the fact
that it treats labor as a commodity.” (The Accidental Theorist, Norton, 1998, p. 15) Is it true that
capitalist employers treat their workers “commodities”? In what sense is the marketplace “cruelly
capricious”? Give examples.
Contrast Professor Krugman’s views with those of Bill Marriott, president of Marriott
Corporation, who said:
“One of the important things…is [to] counter the notion that big corporations are faceless machines…
When employees know that their problems will be taken seriously, that their ideas and insights matter,
they’re more comfortable and confident. In turn, they’re better equipped to deliver their best on the job
and to the customer. Everyone wins: the company, the employee, the customer. The philosophy of
putting employees first is particularly important in our industry, because Marriott is in the people
business, not just the service business….I’ve said again and again that our associates [employees] are
number one. It won’t hurt to say it one more time. Without the hard work and dedication of our team,
Marriott wouldn’t exist. Period. That’s why taking care of our employees is a top priority for the
organization.” (The Spirit to Serve, HarperBusiness, 1997, pp.5, 35, 126-127)
Are employees treated as “commodities” at Marriott? Is their labor policy “cruelly capricious” or
“caring”? Is Marriott the exception to the rule among big companies?
