In the late '50s and into the '60s the aircraft industries in Southern California were operating in similar fashion to hire engineers and management personnel. Nothing new really. In fact the practice was the genesis of benefits like medical and dental. They were carrots to attract the largest population of applicants from which there was the better draw of talent. Personally I see the largest problem in today's business environment is the big fish are allowed to gobble up the little fish to acquire technology or squelch competition. It is on par with the dismal pickings from the American labor pool because too many potential employees may be attractive on paper rather than in actuality simply because of the sorry state of the American education system. American competitive capitalism is great until it becomes predatory; predation is built into the model. Obvious since the days of ma Bell and likely through out all human history. It is an unfortunate part of human nature; just like war.
Yes, from a wider economic perspective too many little fish being gobbled up is probably harmful and anti-innovation. These acquisition may be beneficial to particular investors/workers but probably not the whole economy.
Since we agree on this; how is it governance does not side with competitiveness and block mergers creating super-powers, buyouts resulting in the same creation, and hostile takeovers? All of which qualify as predatory capitalism, feed greed, and do not benefit a capitalistic society.
That's a really good question. It's unfortunately probably on the border of economics and governance so it's not as popular of a topic in economics. I know Luigi Zingales runs the promarket - https://www.promarket.org/ site which has a lot of interesting commentary on this issue. He's one of the economists that I have found to be most focused on the issue of regulatory capture.
In the late '50s and into the '60s the aircraft industries in Southern California were operating in similar fashion to hire engineers and management personnel. Nothing new really. In fact the practice was the genesis of benefits like medical and dental. They were carrots to attract the largest population of applicants from which there was the better draw of talent. Personally I see the largest problem in today's business environment is the big fish are allowed to gobble up the little fish to acquire technology or squelch competition. It is on par with the dismal pickings from the American labor pool because too many potential employees may be attractive on paper rather than in actuality simply because of the sorry state of the American education system. American competitive capitalism is great until it becomes predatory; predation is built into the model. Obvious since the days of ma Bell and likely through out all human history. It is an unfortunate part of human nature; just like war.
Yes, from a wider economic perspective too many little fish being gobbled up is probably harmful and anti-innovation. These acquisition may be beneficial to particular investors/workers but probably not the whole economy.
Since we agree on this; how is it governance does not side with competitiveness and block mergers creating super-powers, buyouts resulting in the same creation, and hostile takeovers? All of which qualify as predatory capitalism, feed greed, and do not benefit a capitalistic society.
That's a really good question. It's unfortunately probably on the border of economics and governance so it's not as popular of a topic in economics. I know Luigi Zingales runs the promarket - https://www.promarket.org/ site which has a lot of interesting commentary on this issue. He's one of the economists that I have found to be most focused on the issue of regulatory capture.
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