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>this failure mode of self-destructive financialization seems incredibly common among american firms Isn't that by design? Ideally, business people will captur
by mrtksn 2y ago
>this failure mode of self-destructive financialization seems incredibly common among american firms
Isn't that by design? Ideally, business people will capture the market (usually though innovation and disruption) and then optimize the profits by removing costs as much as they can. In a "perfect world", Boeing wouldn't have any engineers, workers and facilities and they will just sell planes without delivering any.
They will be like licensers, middlemen or even better they build just one very powerful plane and whoever owns it has huge advantage over the rest so Boeing will sell "making sure your enemy doesn't have it" rights and extract the profits using a raspberry pi plugged on the wall at a Starbucks, running a code written by the lowest bidder on Fiverr and keeps selling planes and transferring the money into the shareholders bank accounts at the lowest transfer costs possible through the most tax-optimized scheme.
That's the ideal world Peter Thiel describes and he is right. Of course he shows concern for other stuff but that's because of ideological/personal/religious reasons.
- arresin 2y agoWait why is that ideal?
- mrtksn 2y agoIt maximizes the profits
- nobody9999 2y ago>It maximizes the profits The suggested ideal[0] was: Boeing wouldn't have any engineers, workers and facilities and they will just sell planes without delivering any. Which is fraud. A criminal offense. One could capture even more profit by selling a product to someone, take their money and then murder them and take the product back (or just take the product back with violence, whether or not death occurs), that maximizes profits even more. Why don't we do that instead? Because It's wrong? I'd say my example is different from GP's only by degree, but is the same in that they're both criminal offenses (felonies, in fact). Then again, if it "maximizes profit," what's bad with that? In fact, what's with this whole "criminal law" thing anyway? All this stuff should be handled via arbitration paid for by the seller. What could go wrong? [0] https://news.ycombinator.com/item?id=41922544 https://news.ycombinator.com/item?id=41922544
- mrtksn 2y agoWhy would be a fraud if that's the thing they agreed on?