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Agreed. Well articulated. >Many US business elected to chase short term growth, and short term and higher margins and minimize long term investments. I would
by tharmas 1y ago
Agreed. Well articulated.
>Many US business elected to chase short term growth, and short term and higher margins and minimize long term investments.
I would like to add that this was due to the influence of Milton Friedman. He put the emphasis on shareholder returns being the most important, without considering the survival of the company itself.
- paganel 1y agoMore generally, the financialization of the US economy (and of the Western economy more generally speaking) has a big part of the blame in this. Yes, more evolved financial markets provided easier access capital, but, as it so happens in those types of situations, access to capital and enjoyment of said (liquid/financial) capital became a target in itself, the rest of society didn't matter. In fact, the whole (Western) society was moulded around (liquid/financial) capital, it became its raison d'être.
- robertlagrant 1y agoIf the company doesn't survive, shareholders aren't likely to be that happy.