3 ms·

Supply and demand. How many people can assemble widgets? Billions of people. How many people can make the correct decisions as a CEO of a large company? Reall

Supply and demand. How many people can assemble widgets? Billions of people. How many people can make the correct decisions as a CEO of a large company? Really not many, since you need someone with an IQ over 140, someone with industry expertise, with the right personality, etc. So the supply is low. Also the demand is high, since that person's decision making has multi-billion dollar consequences. Low supply and high demand equal $$$.

axelroze 5y ago
That's the biggest problem with the current monopoly capitalism. Centralization of power into single people making decisions with momentous impacts (be they 140+ IQ or total idiots as some other CEOs are). A good economy is made from small and medium enterprises in which some of them failing do not make much of a difference. That is also the basis of a good investment strategy, diversification. If the single person in power does good then everything is good (more for the top people but good for everyone nonetheless). But if they do bad then thousands to hundreds of thousands of people suffer. (Reminds you of monarchy?) And the current way of looking at this is just to hope that the person in power will be happy to do good due to more shares. What would be, in my opinion, better would be to split FAANGS and encourage SMEs (small and medium enterprises)