3 ms·

Why is capital owners controlling production desirable?

• kortilla 9mo ago
  Because of incentive alignment. They are the only ones incentivized not to do something stupid with their own resources.
  • dudefeliciano 9mo ago
    of course people are also resources in this framework, and "something stupid" could be providing insurance/healthcare/pension etc - unless a tyrannical (/s) government forces them to do otherwise
  • direwolf20 9mo ago
    How does Elon Musk fit into your framework?
• orwin 9mo ago
  It's not. But that the system we're currently under. In a better world, you'd have employees, local government, consumers as well as obligation owners on the companies boards.
• logicchains 9mo ago
  Because they created the production; it they couldn't control it then they'd have no incentive to create it and there'd be no non-state-owned businesses, exactly as happened when China was fully communist and still happens in North Korea today. Capital doesn't grow out of thin air just from "working"; the only people who think it does are those who've never tried to build a successful business.