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lenerdenator

6824

Karma

2023-06-14

Created

Recent Activity

  • The problem is, shareholding is now so abstracted as to make actual corrective action incredibly unlikely.

    If you have investments, go and look what your holdings are. There's a real chance you have some sort managed portfolio that will trade equities to maintain growth. It might be algorithmically-driven. Your holdings may very well temporarily include some companies that you don't approve of, but trading happens so fast and so often that you're not going to be able to keep up on what you actually own.

  • When you have people at the top of those institutions who made those decisions, and made enough money during their tenures to weather any length of unemployment and were sometimes even given a severance worth more money than the average American makes in a lifetime, going out of business or losing a job simply isn't enough.

    It's one of the only investments of labor and time where the risk is not proportional to the return.

    In order to create risk, you have to either claw back their money through civil action - which you can't because the entire point of incorporation is to separate the business entity from one's personal finances - or look at criminal charges. Otherwise, you have created a class of hyper-wealthy people who have no real incentive to perform in a way that is for the best interests of shareholders or society at large.

    It's the reason we tie so much for regular people to employment in the US, like healthcare. Many argue that if you give the rank-and-file worker the kind of long-term financial security that just one or two years of being a C-suite executive at a major company, they won't work as hard. They won't make the best decisions. They won't be the dynamic workers our economy supposedly wants. That logic goes right out the window when a board goes hunting for a new CEO.

    There's zero real risk involved.

  • We didn't recover from the 2008 crash properly because we didn't introduce consequences for those who created it.

  • Customers don't matter. Revenues do.

    TVs are now a commodity that competes almost solely on price. You can walk into most big box stores in North America and buy a TV that will display at a higher resolution than your eyes are physically capable of processing at the distance of the average living room, have a screen bigger than the average person's wingspan, and it'll cost well under $500. If you don't keep the price low you're going to lose sales. Since you're not making cash on the front-end, you make it by selling the ad space.

    Everyone who could want a TV more-or-less has one. You either cut quality so they have to buy 'em more often, or you monetize what's already there. They're probably doing both, but this is an example of the latter.

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