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>It is incorrect to assert that the employees are creating all the value created by a company. This wasn't asserted, so it isn't really worthwhile to argue aga
by ABCLAW 8y ago
>It is incorrect to assert that the employees are creating all the value created by a company.
This wasn't asserted, so it isn't really worthwhile to argue against it. Obviously other stakeholders can participant in value generation, including by providing influxes of capital.
Obviously employees are going to generate more value than they capture on the whole; if they didn't, the firm would crater over time.
The key here is the proportion.
- harryh 8y agoMy apologies if I misunderstood, but your use of the term "extraction" implied (to me at least) that money accruing to shareholders was being taken out of value produced solely by employees. I agree that the key is the proportion. One way to think about this is to imagine if one of the employees in question quit and started operating independently. How much $ could they make? If it's more than they made while working for the company then the proportion taken by shareholders might indeed be too high. But if it is not more, then you've got a hard hill to climb when making your argument that the proportion is significantly off.