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Making money is required for organization to keep existing and do their job. But the job doesn't have to be to make the most money. We need to allow organizatio
by ianburrell 3y ago
Making money is required for organization to keep existing and do their job. But the job doesn't have to be to make the most money. We need to allow organization with other purposes or to make steady money over longer time period.
A good example are utilties, which should have the purpose to providing service, and make limited profit. Publicly owned utilities that try to make the most money are problematic because of the natural monopoly.
There are plenty of businesses that could make more money, but that don't want to expand. Lots of businesses come in units, like a single restaurant, that can be managed by one person. Expanding is risky and require more work than owner wants to expend.
The problem with current companies is wanting to make the most money in the short-term. Most investors have a long term horizon to retirement and need value in decades. Chasing short-term profits might end up risky and destroy future value.