3 ms·
> This is a self-inflicted problem. I think it is a problem when markets become profit driven rather than product driven. By this, I don't mean businesses sho
by godelski 1y ago
> This is a self-inflicted problem.
I think it is a problem when markets become profit driven rather than product driven.
By this, I don't mean businesses shouldn't put substantial weight on their profits, but rather that when push comes to shove you have to ask which matters more: profit or product? You will constantly be faced with some choice of sacrificing the quality of the product in favor of higher profits or sacrificing profits in favor of the product.
Certainty we want to maximize both, but this isn't always possible.
I think part of this has come through our runaway problem with shareholders and hyper fixation on the short term. Many shareholders are happy to trade product for profit because they believe they can exit during the market lag. It is statistical arbitrage. They have no interest in the long term value of a company or product, only until the time of exit.
It's worth noting that being too focused on the short term will damage the long term sustainability. Many times you have to put off profits today for profits tomorrow. That's the same problem. But there will be significant pressure against this if people driving don't care about tomorrow.