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They hit the nail on the head right here: "Companies are psychologically and emotionally geared not to raise wages as a matter of course." Our current business
by chank 9y ago
They hit the nail on the head right here: "Companies are psychologically and emotionally geared not to raise wages as a matter of course." Our current business culture is basically to maximize profits and minimize expenditures.
- salmonet 9y agoFor whatever reason, maximizing profits and minimizing expenditures is a popular trend among many successful companies
- salesguy222 9y agoPotential side-effects directly caused by this are also similarly trending underemployment, opioid addiction, crime, suicide, widening wealth gap all come to mind
- electricEmu 9y agoIt's popular until a company loses its market. Minimal expenditures mean minimal investment and retainment. That's not healthy in the long-term for a company. If you'd like to discuss further then please provide more than a summarized sentence.
- krapp 9y ago>Our current business culture is basically to maximize profits and minimize expenditures. Yep, what the shareholders get is profit, what employees get is an expenditure.
- liveoneggs 9y agoshareholders don't get profits; hardly anyone is paying dividends. Corporations are just hoarding cash.
- harryh 9y agoThere is some cash hoarding (mostly overseas for tax reasons), but mostly what companies are doing are share buybacks. These are functionally equivalent to dividends but more tax efficient.
- marcosdumay 9y agoLess and less people get to own more and more of the company, until it's completely self owned and the board won't answer to anybody anymore? Funny thing is, it may work better than the current conflict of interest company boards have.
- liveoneggs 9y agonah they just re-issue the stock at a big discount to their friends and then issue more at an inflated price to dilute regular shareholders
- marcosdumay 9y agoIn practice they split the stock once they brought back too much of it, so people can sell part of their holdings and the cycle goes on.
- prostoalex 9y agoThat cash is then reflected in stock price increase, which is preferable to dividends for tax purposes.
- liveoneggs 9y agoa bird in hand is worth two in the bush
- prostoalex 9y agoAnd yet buy-and-hold is a thing in investment world.
- blawson 9y agoWhich isn't necessarily a problem is employees share in ownership. Unfortunately, it seems this is generally an option only for those that already make a relatively good income.