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People risking their own money tend to be non-corrupt about managing it. Those who pay with other people's money tend to be more corrupt. It has nothing to do
by stretchwithme 8y ago
People risking their own money tend to be non-corrupt about managing it. Those who pay with other people's money tend to be more corrupt.
It has nothing to do with the color of their collars. Either interests are aligned or they are not. When you pay the costs and get the benefits, you are less likely to be corrupt. When you get the benefits and the costs get shifted to somebody else, you are more likely to be corrupt.
As I've already said, workers have power. They just don't have power that rightfully belongs to the owners. It seems like another way to create a monopoly over the labor supply and it would be destructive in the long run.
- rexpop 8y ago> They just don't have power that rightfully belongs to the owners. Tell me more about how rightfully these venture firms acquire their capital?
- forapurpose 8y ago> People risking their own money tend to be non-corrupt about managing it. I don't think this theory matches reality. There is plenty of corruption in management and I don't think I need to provide specific examples. Also, plenty of managers are not risking their own money and, as individuals, their interests are not aligned at all with the business'. Plenty of startup founders screw their businesses for big exits; plenty of owners liquidate and leverage companies to suck out as much cash as they can before they dispose of them; plenty of CEOs think they are God, the company is their toy, and anything they want to do is fine; and there are plenty more dirty stories in the business world. Workers are risking their own jobs, futures, and money; generally they have less career flexibility than managers. If the auto plant closes, that's it. > rightfully That's part of our question, not the answer.