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Producing value? Sometimes. Sometimes extracting rent. Sometimes speculating. If private equity buys a pharma company and cuts research, jacks up prices to ext
by quickthrower2 4y ago
Producing value? Sometimes. Sometimes extracting rent. Sometimes speculating.
If private equity buys a pharma company and cuts research, jacks up prices to extract money from insurance, that might be "clever" but it is not really benefitting anyone, quite the opposite.
Obviously a lot of capital is used to create more value, but it does so by using labour, so it is the creativity of the people working for that capital that is adding the value mostly, while the capital sits back and enjoys it's growth. This is the concept behind public traded companies.
- SyzygistSix 4y ago>while the capital sits back and enjoys it's growth So people should risk their capital for nothing? I'm all for better pay and working conditions but the value from some ventures does not always come from the creativity of the workers. Sometimes it does, sometimes it doesn't so much.
- quickthrower2 4y agoEr no. Just saying we shouldn’t be in awe of people because they have money and can make more of it, like this is a societal service they are performing. Sometimes it is, sometimes it isn’t, sometimes it is the opposite.