3 ms·
The problem is that it is not necessarily harmful to them, but harmful to others (and encourages behavior to that effect.)
by michael_dorfman 18y ago
The problem is that it is not necessarily harmful to them, but harmful to others (and encourages behavior to that effect.)
- Tichy 18y agoBecause they only care about short term wins? But wouldn't that still damage the companies who employ them? And should it be illegal to seek short term wins?
- iuguy 18y agoThe market would find a way around it. Also bear in mind that a corporation's only purpose is to make money for its shareholders. By eliminating short term wins you're interfering with that area.
- Tichy 18y agoI don't think it should be illegal to seek short term wins. Unless perhaps they qualify as gambling, but even then I am not sure that gambling should be illegal (really don't know).
- michael_dorfman 18y agoHow about gambling with other people's money?
- Tichy 18y agoHow can you get away with gambling with other people's money? I think fraud should be illegal, that is telling people that their investments are 100% secure, when they are not, should be illegal. Other than that, if people invest into a risky company, it is them who are gambling.
- joshwa 18y agohttp://en.wikipedia.org/wiki/Information_asymmetry http://en.wikipedia.org/wiki/Information_asymmetry
- anamax 18y ago> The problem is that it is not necessarily harmful to them, but harmful to others (and encourages behavior to that effect.) It's only harmful to others who decide to make the same mistake. It's useful to (different) others who observe and conclude "wow, that's dumb in 3D". Someone else doing something different is a free (to you) learning opportunity. If it works, you can copy. If it doesn't work, you can avoid. There are CEOs who are worth $240M/year in specific circumstances. Laws are unlikely to make the right call but the market will, rewarding folks who get it right and punishing those who get it wrong. What can be better than that?
- michael_dorfman 18y agoBut do those who do it wrong get punished, or do they get to keep the $240M? I've seen a lot of incompetent CEOs walk away with substantial golden parachutes, while employees harmed by their actions got nothing but two week's noticw...