4 ms·

Disturbing is that apparently some people would prefer to see this "one of last plants in Detroit" bankrupt a all employees and their jobless, rather then tripl

by michalu 13y ago

Disturbing is that apparently some people would prefer to see this "one of last plants in Detroit" bankrupt a all employees and their jobless, rather then tripling workforce in what is now most distressed place in US with 16% unemployment. http://www.nytimes.com/2013/07/16/business/last-car-plant-brings-detroit-hope-and-cash.html http://www.nytimes.com/2013/07/16/business/last-car-plant-br... Apparently these (pre tax) profits don't end up in somebody's pocket as you imagine but are reinvested in giving more people jobs and growing the plant.

eru 13y ago
The bigger plant is still in the investors' pockets. (No moral judgement implied.)
- michalu 13y ago
  Depends on who are the investors. Fiat is publicly traded, the investor might be anyone with 401 or mutual fund investment.
  - eru 13y ago
    Oh, and you mean these people are not on savvy enough, so the managers run the plant for their own benefit rather than the shareholders' benefit?
    - michalu 13y ago
      For their own benefit??? Do your only see what confirms your world view? No they hired 3 times more people for the money they made. If I had a family in Detroit I would be much happier to have a job that stay unemployed. They are doing the good thing. Apparently managers are doing a good job - the company was bankrupt all of those people would risk ending up on streets - it's Detroit we're talking about. Instead they turned it over and gave jobs to 3 times more families. And no not everyone is savvy enough to run a business, some people don't have necessary skills - we all have different talents and aspirations.
      - eru 13y ago
        Oh, I agree that hiring people and giving them an honest job is a very good thing in general. I was just highlighting the principal agent problems. Managers like to hire people---because they can build their empire. Influence and status in most companies go up the more people you have reporting to you. In this case, hiring more people seems to be in the interest of employees, managers and shareholders alike. Remember, selfish does not necessarily mean bad.

by michalu 13y ago

eru 13y ago

The bigger plant is still in the investors' pockets. (No moral judgement implied.)

michalu 13y ago
Depends on who are the investors. Fiat is publicly traded, the investor might be anyone with 401 or mutual fund investment.
- eru 13y ago
  Oh, and you mean these people are not on savvy enough, so the managers run the plant for their own benefit rather than the shareholders' benefit?
  - michalu 13y ago
    For their own benefit??? Do your only see what confirms your world view? No they hired 3 times more people for the money they made. If I had a family in Detroit I would be much happier to have a job that stay unemployed. They are doing the good thing. Apparently managers are doing a good job - the company was bankrupt all of those people would risk ending up on streets - it's Detroit we're talking about. Instead they turned it over and gave jobs to 3 times more families. And no not everyone is savvy enough to run a business, some people don't have necessary skills - we all have different talents and aspirations.
    - eru 13y ago
      Oh, I agree that hiring people and giving them an honest job is a very good thing in general. I was just highlighting the principal agent problems. Managers like to hire people---because they can build their empire. Influence and status in most companies go up the more people you have reporting to you. In this case, hiring more people seems to be in the interest of employees, managers and shareholders alike. Remember, selfish does not necessarily mean bad.