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You’re (edit: sorry, GP was) espousing the broken windows theory, though. Corporations already have a natural incentive to re-invest in themselves when it’s a p
by jquery 6y ago
You’re (edit: sorry, GP was) espousing the broken windows theory, though. Corporations already have a natural incentive to re-invest in themselves when it’s a profitable decision to do so.
- munk-a 6y agoI don't think so because the corporation isn't a person and no one actually has the corporation's best interests at heart. Everyone is invested or labour for the venture for money - some idealists may want to build a great thing - but those will be far in the minority compared to those that want to sell a great thing. Reinvestment in a corporation is only naturally incentivized when that strategy appears to give the biggest RoI and not all money uninvested from markets, companies etc. will necessarily be reinvested in another venture.
- Spooky23 6y agoIn theory sure, but there are many many counter-examples. Corporate management rarely makes decisions that are against their interests.