4 ms·
Sorry but I have to make the precision: market optimized for monetary output and not necesarily social good. Companies doing well in the stock market might be e
by gjulianm 9y ago
Sorry but I have to make the precision: market optimized for monetary output and not necesarily social good. Companies doing well in the stock market might be exploiting workers, unnecessarily exposing consumers to different dangers, destroying the environment or a plethora of any other bad things and the stock market would not care as long as it does not create a PR problem that could affect sales of the company.
Similarly, a company that does well socially (e.g, a public hospital) but not economically would get obliterated in the stock market.
- liotier 9y ago> Companies doing well in the stock market might be exploiting workers, unnecessarily exposing consumers to different dangers, destroying the environment or a plethora of any other bad things and the stock market would not care That would be regulatory failure - it is not the market's fault if the government is weak... Fix the government, get decent labor laws, let companies internalize externalities, regulate environmental impact ! > Similarly, a company that does well socially (e.g, a public hospital) but not economically would get obliterated in the stock market Which is why, in civilized countries, public services are provided by the government or on behalf of the government. Foisting government responsibilities upon the market is bound to create disappointment...