I find it odd that the same people who champion free markets, competition, and capitalism are often the ones who, as corporate leaders, lay off employees to artificially boost short-term profits—and who, as national leaders, manipulate the market with tariffs to make foreign products more expensive in order to prop up domestic financials. I think it’s worth stepping back and looking at all of this through the lens of simple, first principles.
RAMIFICATIONS
These bizarre practices have not only been normalized in the way many companies are run—they’re now creeping into how some countries, particularly the United States, are being governed. While they may seem beneficial to some on the surface, they carry several serious and far-reaching negative consequences.
For companies, I believe that these practices lead to the following:
Morale sinks for those who remain—knowing they could be next, and that employees are seen as ultimately dispensable. They understand being let go for sustained poor performance, but it’s the unsettling reality that even those doing good work can lose their jobs at any moment due to a workforce reduction. That constant uncertainty is what makes it so deeply stressful.
The companies’ financials no longer reflect true financial health, making it difficult for investors to assess actual performance.
Laid-off employees are often devastated and demoralized, left worrying about how they’ll support themselves—and their families, if they have them. For U.S. workers in particular, the anxiety is compounded by the loss of healthcare, since the United States remains the only major developed country without universal, government-supported coverage.
For countries—most notably the U.S., or more specifically, Donald J. Trump in this case—tariffs result in the following:
These actions have eroded trust among nations—particularly those that once considered the U.S. a close ally—leaving many to conclude that the country can no longer be relied upon as a stable and dependable partner.
In response, countries around the world are actively working to diversify their economies and reduce their dependence on the U.S., forging new international trade relationships that sideline American involvement.
American consumers are paying the price, with higher costs for imported goods due to tariffs, while investors are seeing their portfolios shrink as market uncertainty drives down stock values.
AN ALTERNATIVE APPROACH
Instead of manipulating financials and markets through artificial means, I’d like to propose that we return to celebrating the true spirit of a market economy—one grounded in free trade, fair competition, and stakeholder capitalism.
For Companies
Rather than laying off employees to artificially inflate short-term financials, companies should recommit to their people. Support their growth, invest in their development, and build cultures rooted in trust, care, and purpose. When employees feel secure and valued, they’re more creative, more productive, and more willing to go the extra mile.
Rather than taking shortcuts, focus on creating better products to achieve authentic, sustainable profitability. Researchers and designers play a critical role in making that happen. UX researchers use rigorous methods to uncover unmet user needs, evaluate early solutions, and reduce the risk of expensive missteps. Designers translate those insights into user experiences that address real challenges, differentiate offerings, and continuously improve through iterative feedback.
It honestly baffles me that so many companies are laying off researchers and designers—the very people who help ensure products succeed. Since retiring from IBM, I’ve been co-leading a nonprofit, Habits for a Better World, and now find myself on the receiving end—a user of the very products built by the companies making these cuts. And I have to say: the decline in quality is obvious. The design and user experience in many products are suffering. In my view, no company can thrive long-term with a hollowed-out design and research team.
For Countries—Particularly the U.S.
Instead of manipulating the market with tariffs to make foreign products artificially expensive—and thereby give domestic products an unfair advantage—I believe the U.S. should do the harder, more honest work: build better products and compete on merit.
Take EVs, for example. While Tesla initially led the global EV movement, it has since lost its way. China’s EV makers—especially BYD—have surpassed Tesla, both in technology and design. Meanwhile, Tesla’s CEO has become more of a distracted social media influencer and de facto political figure than a focused business leader. The whimsical launch of the Cybertruck, absent real research or user validation, is one glaring example of how far the company has strayed.
Contrast that with BYD: no flashy celebrity CEO, just steady, focused progress on technology, innovation, and design. They now outsell Tesla, proving that disciplined design and product excellence still win.
Frankly, if Tesla hopes to recover, the CEO should step aside so new leadership can re-center the company on what matters: innovation, design, and quality.
And Tesla isn’t alone. In sector after sector—from AI, drones, and aircraft to high-speed rail, solar panels, semiconductors, biotechnology, and green energy—other countries have taken the lead.
So instead of trying to reshape the competitive landscape through tariffs, if the U.S. expects to be relevant in the future, it should focus on doing what it used to do best: building world-class products that speak for themselves.
Conclusion
This isn’t a criticism of hardworking Americans. Quite the opposite. It’s a critique of the leaders—those at the helm of companies and of the country. If they truly believe in capitalism, they should honor free markets, fair competition, and the principles of stakeholder capitalism—not game the system at the expense of people, progress, and product quality.