Greed Price

In this article, “How McKinsey Destroyed the Middle Class,” the author, argues that management consulting, led by firms like McKinsey, has played a central role in reshaping American business and widening economic inequality. In the mid-20th century, American corporations featured extensive middle management, robust internal training, and clear pathways for workers to rise from entry-level to executive roles. This structure empowered a broad swath of employees and helped build a strong middle class by distributing management responsibilities and income more evenly. There were success stories of the mailroom clerk moving up the ranks to become VP or even CEO. Loyalty was a two-way street. 

However, beginning in the 1960s and accelerating in the 1980s and 1990s, management consultants promoted a new business model focused on shareholder value and cost-cutting. They encouraged companies to eliminate middle management and reduce permanent, full-time jobs, often replacing them with part-time or subcontracted labor. This shift concentrated planning and coordination in a small group of elite executives and consultants, stripping most workers of opportunities for advancement and stable employment. 

As a result, the pay gap between executives and ordinary workers exploded, unions weakened, and much of the workforce became more precarious. It is no longer in the realm of possibility for employees to think of their job at any company to last their lifetime. If they had a five year run that would be an accomplishment. Making it over a decade nothing short of a miracle. If an employee sticks around that long, often it because of circumstances beyond their control. If the employer hasn't gotten rid of them yet, they should just count themselves lucky not not hold their breath on that luck not running out. 

The article concludes that while management consulting is seen as a meritocratic and prestigious field, attracting elite graduates and offering high pay, its practices have contributed to structural inequality, undermining the American middle class and creating a system where a narrow elite controls most of the wealth and power. I am not sure that the blame is fully attributable to management consulting companies. They doubtless played a key role but could only succeed in due to limitless corporate greed.