Triple Don’t Like: The ramifications of “Public” Corporations

THIS: http://www.nytimes.com/2008/05/01/business/01oil-web.html?_r=1&hp&oref=slogin

I’m not going to get into a big economics thing (I can’t type really right now). But damnit the problems with being a public company and the motive for profit-increase above all else is crippling the welfare of the nation… That’s not hyperbole.

1) I’m not a communist or even close, don’t even go there. I’m a capitalist.

2) Being against the concept of the public company DOES NOT mean I don’t think corporations are evil and don’t have a right to make money or that I think the concept of a public company in and of itself necessarily bothers me. It’s about the effects on the American worker.

3) The danger of a public company comes from the inherent need to constantly drive profits up. This is equal to the constant need to accelerate and go faster and faster in a car. Suddenly the game is about how you keep making more and more money every quarter and plain old capitalist business model of “making money” isn’t enough. Not only that, but (like we see in the link above) the mere suggestion that massive profit falling short of “expectations” damages the company and the gives perception of failure. Watch as a company making unheard of amounts of money often goes and fires people to save overhead and make enough extra money to appease stockholders. It puts the stock game (and it is a game, akin to gambling) ahead of its workers, the collective interest of the company, and even ahead of the board directors long term interests! (witness: enron). It’s disastrous to even the middle rung white collar worker. With that, the erosion of American industrialism has made the marginalized entry-level-white-collar-worker a synonymous occupation with the American working class. It’s true.

4) The hysteria surrounding the stock game causes the people running said public company to feel like they solely have to deliver to the stock holders. It’s short term interest and it completely rules over every facet of the company. Don’t get me wrong, there’s lots of smart people who understand economics working for these companies and they know how what’s in their best capitalist interests. But the stock hysteria cripples those interests.

5) Worse, it leads to drastic class conflict. Maybe even class warfare which I know is a dangerous term, but it’s sadly an accurate term.

6) there’s no real way I can think of to undo the system as it exists so we’re kinda fucked

7) this is far more nuanced than I have time to get into right now

UPDATE:

haha. I just saw this funny fark headline:

Exxon profits rise from “ass rape” to “atomic ass rape,” disappointing investors who were looking for “super-nuclear ass rape”

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