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Let's do a mental exercise: the US government decides to nationalize those 3 companies. 1) Buying them would require at least 30% over their market caps, so le
by ucaetano 9y ago
Let's do a mental exercise: the US government decides to nationalize those 3 companies.
1) Buying them would require at least 30% over their market caps, so let's say $1.3T for Google, and $1.3T for Amazon and FB combined, which is about 2/3 of the entire US Gov budget, so there's no way the government is paying fair market price for this
2) Since the government isn't paying fair market price, it essentially needs to seize the shares by force and then go through the courts for years to fight it off. Millions loose hundreds of billions of dollars in their ETFs, and their retirement savings take a massive hit
3) Even if the government seizes the shares by force, there are very few actual assets owned by those 3 companies, most of the value is in data, systems, growth expectations, employees, etc.
4) With the government forcibly taking control of those companies, countries around the world would take action and either take control of the local subsidiaries or just detach them from the US company, everything starts breaking down
5) Employees quit em masse, there's nobody able to run the systems, the government either has to arrest employees and force them to work, or simply let all the systems go down one by one. Hiring new people won't make a difference, as the learning curve is massive, and you wouldn't even have access to the systems
6) The products offered by those companies quickly fail, and the former employees open new companies that offer similar products, the government wiped out trillions of dollars from the global economy, a massive economic colapse ensues
7) As the global economy crumbles, the author blames the companies and the employees for not being willing to work for a shitty government job in a gulag with no opportunity for innovation, and refuses to take responsability for his/her stupid idea.
It doesn't take a lot to understand how stupid this idea is. I usually don't like to call things stupid, but whoever came up with this idea put so little critical thinking behind it, that it isn't just bad, it's stupid.