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Forums - Politics - DO REAGAN ECONOMICS WORK? ?

richardhutnik on 13 August 2011
mrstickball said:
richardhutnik said:

One thing that happens in corporate environments is that managers and executives who do such cutting corners get praised for driving costs down, and then they move on to other things, and someone else has to pick up the pieces.  I do know the company in question I have described is on a mission to gut its workforce of American workers at this point, so they wonder why their frontline managers have problems finding people.  Well, disrespect your workforce and they don't stick around.  Who ends up biting the bullet isn't management, it is shareholders long-term.  Well, they the ones drive for NOW results, so maybe it is what goes around, comes around.


Ah, and there is the key.

One of the major problems we have with corporations isn't so much the management, or executives, but the limp-wristed shareholders.

If a company is public and has shares, said shares constitute an allowance of a democratic process at the company to force change when its needed. Unfortunately, many, many shareholders simply do not care - as long as dividends are rolling in, they could care less about the corporate culture. That needs to change (and many investment websites have argued the same thing in regards to the decline of American manufacturing and other issues).

When you have a system where owners of a company don't bear any liability for what a company does, then there will be a disconnect.  Imagine what would happen if shareholders beared liability risks for owning stock.  Things would change.  The entire system now is one of an appreciation/inflation game in the value of a stock.  You have people who trade and don't even look at the fundamentals of a company.  It is maximize money now, and corporations as their own entities totally divorced from anything except maximizing profits now.  Corporations jetisons even management and everyone else, and exist under their own motivations for anything.  Curious how things would change.