2 ms·
Why? This leads to optimal results assuming high quality laws that put a price on externalities and make sure markets are competitive. These assumptions are ap
by RivieraKid 4y ago
Why? This leads to optimal results assuming high quality laws that put a price on externalities and make sure markets are competitive.
These assumptions are approximately correct, so maximizing shareholder value is approximately optimal. It maximizes prosperity.
It's better to create more value than less value all things being equal. If you put it this way, it's obvious.
- Arainach 4y agoIt doesn't account for externalities. It also doesn't distribute "value" equitably. It's more profitable to dump waste in a lake than to clean it up. It's more profitable to hire children for 10 cents a day than adults for a living wage. It's more profitable to keep using ingredients even after they've started turning bad. None of these deliver value to society.