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This is the central problem with investment capitalism, as distinguished from what I'd call industrial capitalism. Once you put the shareholder associations in
by photochemsyn 4y ago
This is the central problem with investment capitalism, as distinguished from what I'd call industrial capitalism. Once you put the shareholder associations in the driver's seat, and eliminate most input from the people who work for the corporation, you always find the company trending towards monopolistic behavior, eventually leading to poor-quality products with various safety issues, because that's a way of reducing costs once you have a captive market. With Google and Apple, ownership is somewhat diffuse but the top tiers are the usual suspects: Vanguard, Blackrock, FMR, State Street, Berkshire-Hathaway, etc.
https://finance.yahoo.com/quote/GOOGL/holders/ https://finance.yahoo.com/quote/GOOGL/holders/
https://finance.yahoo.com/quote/AAPL/holders/ https://finance.yahoo.com/quote/AAPL/holders/
The only real solution is to give the employees of the corporation the degree of power when it comes to selecting the executive cohort as the shareholders of the corporation have - i.e. a 1 : 1 ratio. Germany does this to some extent.
The other option is more radical - eliminate the shareholder system of devolved liability entirely, and only allow the people who work within a corporation to own shares in that corporation. (Note that the traditional communist-socialist approach would be to simply replace the shareholders with a governmental central committee while keeping the structure essentially the same.)