5 ms·
Addl note on the phase change: administration might also be thought of as capital ownership in a economic or capitalist context where an inefficiency is protect
by dv_dt 3y ago
Addl note on the phase change: administration might also be thought of as capital ownership in a economic or capitalist context where an inefficiency is protection or "administration" of large pools of existing wealth and profits becoming more important than the continued building of the creation of value and identification and solving of social problems through economic activity.
- AnthonyMouse 3y agoIn particular, this would be capital ownership by independent investors who are only interested in abstractly making money and not being personally involved in business operations, and then hire managers afflicted with the principal-agent problem to handle the details.
- dv_dt 3y agoIndividual investors are actually pretty disenfranchised compared to concentration of financial parties like institutional investors and private equity. This those more collected interests which are happy to install a Professional Managerial Class that are only interested in the abstract financials and ignore principal agent mismanagement of long term interests. But concentrated fictionalization agents and PMC they appoint preserve their control above their ability to manage healthy growth. And our system is unable to check them.