3 ms·
Investment capitalism is a pretty flawed economic model - the shareholders will always want more, more, more. In the tech world, once the market is saturated t
by photochemsyn 3y ago
Investment capitalism is a pretty flawed economic model - the shareholders will always want more, more, more. In the tech world, once the market is saturated their only options are to (1) degrade quality of service but cutting costs in 'non-growth sectors' like customer service, or (2) cut labor costs by offshoring or importing cheap labor, or (3) merge competing companies for form monopolies that can set prices well above what a healthy competitive market would converge on. The executives will do all they can to game the system by investing in stock buybacks to raise stock prices (because that's the metric that controls their bonuses), rather than investing in R & D or similar.
This is the result of the wholesale financialization of the economy under the rubric of neoliberal policy over the past 40 years. The outlook is not very good.