Does the government keep capitalist interests on the top ?
Does the government keep capitalist interests on the top ?
Lately since covid has begun, there has been a high job insecurity in multiple fields , while the logical thing to do would have been improving job security laws, at least our govt( the name does not matter really) has brought laws , that gives power to the capitalists to abuse labour laws , or to fire employees more easily! I dont understand how does it even help the state or people , except the capitalists ?
I think in the US, national laws require corporations to maximize shareholder profits at all costs. It's disgusting, but Friedman economists still have the ear of Congress, so there's not much to be done about it.
Most business ethics stuff I’ve seen from the past 10-20 years directly rebukes stakeholder theory and the Friedman purist view of “profits are all that businesses should care about”.
Although… how many CEOs have read books on corporate ethics?
Business is not my specialty, but I do have the sense that the ethical viewpoint is shifting away from Friedman. Unfortunately, the law is not. Shareholder supremacy is still mandated in the US, by my understanding, and ethics be damned.
There's business, and there's ethics.
Pick one.
Neo classical economics is a cult and this is a hill I'm willing to die on.
Can you elaborate? I'm interested to understand this better, both what neoclassical economics exactly is what characteristics make it a cult.
Right there with you. I'd even go further and say that it's the application of lessons the rich learned from the failures of their ancestors in the Guilded Age. This time, they intend to keep workers in their place by any means necessary.
That’s not exactly true.
What is true is that the officers of the company have a duty to act in the best interest of the company, as they evaluate it. That might mean more pay hikes and stock grants. It might mean cost cutting and job losses while executives get bonuses. It might mean offshoring jobs or keeping them local. If the board disagrees with the leadership vision or execution, they can fire people. But there’s no law that governs what a ceo can or can’t do with regard to profit or success, as long as they can show they were acting in the best interest of the company. That’s not hard to do if they managed to not break other laws, like embezzlement.
For instance, if Musk answered to a board of directors at twitter, he would have been fired a while ago, but they couldn’t have him arrested for tanking the company.
This may be technically true but it doesn't play out like that and can't due to structural reasons. The situation arose from Henry Ford paying his workers substantially above what was deemed necessary because he wanted the workers to become consumers, preferably Ford consumers, and the shareholders instead wanted the extra bit in those pay packets to go to them instead. The shareholders took Ford to court and won. Now shareholders for the most part aren't even people or small groups who can be persuaded by things like growing a healthy consumer base in the economy, they're various large funds trying to simply maximize the amount of money they generate independent of any thought about overall economic health.
Maybe not accounted, but certainly they could sue him.
I can see blatant disregard of the anti trust laws and big corps going monopolistic without any actual caps , idk when will it stop !