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comment by Cumol

At the root of it, it's always done for the shareholder. And it always seems like that layer cannot be touched, because it is what gives you these jobs to begin with. So everything in terms of changes is tried on the levels below. 40 hour week to protect the worker!! 50 years later, a 40 hour week is so optimized that it fucks the worker. I can't imagine having a fixed time for a bathroom break...

Companies need to change. Management needs to change etc. But what not "the shareholders need to change"?

I know too little about the stock market and how these businesses are run. But who came up with this idea of shareholders and them having complete control over companies and the main goal being profit maximum?

Maybe a Mr. Robot style nuke of the whole stock market would get rid of that.





kleinbl00  ·  124 days ago  ·  link  ·  

    At the root of it, it's always done for the shareholder.

That is not true. Shareholder value as an economic goal was pursued relentlessly by Jack Welch while he was CEO of General Electric. It's been more than ten years since he said that “the dumbest idea in the world. Shareholder value is a result, not a strategy... your main constituencies are your employees, your customers and your products. Managers and investors should not set share price increases as their overarching goal… Short-term profits should be allied with an increase in the long-term value of a company.”

It should be pointed out that from a shareholder perspective, GE went from $60 to $11 in the face of external technological threats. Shareholder value is the idea that you can't roll your money back into R&D because it doesn't have any immediate benefit, far better to declare a dividend and keep the people who own your shares happy.

Tesla, for their part, gives no fucks about their shareholders. They have been rewarded handsomely for it.

user-inactivated  ·  124 days ago  ·  link  ·  

    It should be pointed out that from a shareholder perspective, GE went from $60 to $11 in the face of external technological threats. Shareholder value is the idea that you can't roll your money back into R&D because it doesn't have any immediate benefit, far better to declare a dividend and keep the people who own your shares happy.

    Tesla, for their part, gives no fucks about their shareholders. They have been rewarded handsomely for it.

Whether we're talking about public or privately owned companies, if there's one real big lesson from companies like Hostess and Toys R Us and Sears and such, is that if you prioritize extracting wealth from company assets instead of using those assets to reinforce the company, you're gonna have a great time making yourself that much richer. Everyone who works for you though? They're gonna have a real bad time society suffers because of it.