Maximizing shareholder value is not the dumbest idea per se - the flaw is that maximizing shareholder value does not maximize the value of the business. Busine

Maximizing shareholder value is not the dumbest idea per se - the flaw is that maximizing shareholder value does not maximize the value of the business. Businesses do not exist in empty space but within a society and their primary responsibility is to provide value to this society by providing jobs, goods, services, taxes, research, you name it. Investment and growth are not primary goals, they are just means to the aforementioned responsibilities. People should invest in a business because of its intrinsic value and not define the value of business by their investments. Financial gains should only be an additional incentive and protection against the risks of investments but not the sole reason for the investment. If you could argue that maximizing shareholder value naturally aligns with maximizing intrinsic value all would be fine but I can not see how this could be true. It may sometimes be true for long-term investments but for short-term investments the contrary seems to be true. If you only care about the next quarter cutting wages and quality is the easy way to maximize shareholder value but is diametrically opposed to maximizing intrinsic value.