Do You Understand capitalism?

[OKTexas]

Two people so far who think the OP is an accurate definition of capitalism.

It's funny, sad and scary, all at once.
.

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

 

[Tehon]

Two people so far who think the OP is an accurate definition of capitalism.

It's funny, sad and scary, all at once.
.

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

 

[Mac1958]

Two people so far who think the OP is an accurate definition of capitalism.

It's funny, sad and scary, all at once.
.

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

You could have made that assumption when you saw the term "fiduciary responsibility".

Most people who understand this stuff would have.
.

 

[Tehon]

Two people so far who think the OP is an accurate definition of capitalism.

It's funny, sad and scary, all at once.
.

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

A corporation has a "fiduciary responsibility" to its shareholders.

If that fiduciary responsibility is breached, the shareholders can sue.

This is pretty basic stuff.
.

The BoD has the fiduciary responsibility.

 

[Tehon]

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

You could have made that assumption when you saw the term "fiduciary responsibility".

Most people who understand this stuff would have.
.

Very well then. I asked the question, I deserve the ridicule. I guess.

 

[OKTexas]

Two people so far who think the OP is an accurate definition of capitalism.

It's funny, sad and scary, all at once.
.

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

It applies to all forms of businesses except sole proprietorships.

.

 

[task0778]

I do. get rich off your workers then proceed to fuck them out of their union, their benefits and their retirement, then build shit as cheaply as fucking possible to last just long enough that you cant bring it back while charging you up the ass for the same product that that employer fired his workforce and moved to china for. To bilk and screw the public by taking all consumer protections and removing all responsibility from their actions whatever they might be all the while getting tax cuts and subsidies and "incentives" from our government they bought off by the transfer of wealth from a corrupt capitalistic system.
There.

Capitalism is an economic model wherein business entities large and small are essentially created and exist to provide a product or service and make a profit doing it. Failure to make a profit results in business failure, ergo companies strive to make a profit which BTW creates jobs, competition their goods and services which drives down prices, and revenue for the various levels of gov't. There is absolutely no question that capitalism is totally responsible for the growth in the standard of living on the entire planet over the past 2 centuries or so. If you look at what life was like prior to capitalism you will find a bleak existence indeed for 99.9% of humanity. Everything from dramatic improvements in food, water, health, education, whatever you name is far better now than it as then and the primary reason is capitalism.

Certainly capitalism if left unfettered can be an unmitigated disaster for the reason listed in the OP. Which is why it cannot be unfettered, and THAT is the responsibility of gov't. Human nature being what it is, capitalism will offer the opportunity for some to to take advantage of others to enrich themselves but that has been the story of civilization since it's inception. The strong, powerful, and entitled royalty have always subjugated the less fortunate if there is nothing to prevent them from doing so, AND IS WHAT GOVERNMENT IS FOR. All those bad things listed in the OP and more are due to bad governance, doesn't matter what your economic model is if the government does not protect the people it serves. So, the problems our society faces are problems that our gov't has not managed well enough. Capitalism is not perfect but neither is anything else, whatever model you choose is going to have the same abuses if your gov't doesn't do it's job.

 

[SassyIrishLass]

Capitalism is for go getters, entrepreneurs, visionaries and individuals who want succees on their own merits.

The opposite is for the slugs who want the government to force wealth redistribution and to regulate.

 

[RightyTighty]

Capitalism is for go getters, entrepreneurs, visionaries and individuals who want succees on their own merits.

The opposite is for the slugs who want the government to force wealth redistribution and to regulate.

No one has unregulated capitalism. That is a horrible idea.

 

[Tehon]

Is it not the duty of a company to maximise profit above all else?

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

It applies to all forms of businesses except sole proprietorships.

.

I see. And so in your opinion maximizing short term profits at the expense of long term value investors is not something corporate managers participate in, because of their fiduciary responsibilities?

 

[SassyIrishLass]

Capitalism is for go getters, entrepreneurs, visionaries and individuals who want succees on their own merits.

The opposite is for the slugs who want the government to force wealth redistribution and to regulate.

No one has unregulated capitalism. That is a horrible idea.

Quiet dunce. You idiots want to regulate to the point business can't breath.

 

[RightyTighty]

Capitalism is for go getters, entrepreneurs, visionaries and individuals who want succees on their own merits.

The opposite is for the slugs who want the government to force wealth redistribution and to regulate.

No one has unregulated capitalism. That is a horrible idea.

Quiet dunce. You idiots want to regulate to the point business can't breath.

Ah, no. One does not kill the goose that lays the golden sawbucks.

 

[Dragonlady]

Why do I get the feeling that this "definition" of "capitalism" was "learned" in a college course?

No. I learned how thing are by finding out with out bias how things work. By watching and living many many decades. My only agenda is The Constitution and The Bill of Rights, Freedom and Democracy none of which is even remotely compatible with capitalism unless heavily regulated with consumer protections in place.

I worked for more than 40 years in banking, finance and law and the level of ignorance on all of these topics on this board is astounding, especially among conservatives. They truly believe every Republican lie about supply side economics, the poor are robbing the middle class and Obama (not Bush) crashed the economy.

 

[OKTexas]

Maybe you should look up the definition of "fiduciary responsibility".

.

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

It applies to all forms of businesses except sole proprietorships.

.

I see. And so in your opinion maximizing short term profits at the expense of long term value investors is not something corporate managers participate in, because of their fiduciary responsibilities?

Not successful ones, every corporation have short, mid and long term strategies that must work hand in hand. An executive that ignores the long term won't be around long.

.

 

[Tehon]

What does "fiduciary responsibility" have to do with a capitalist's desire to maximize profits?

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

It applies to all forms of businesses except sole proprietorships.

.

I see. And so in your opinion maximizing short term profits at the expense of long term value investors is not something corporate managers participate in, because of their fiduciary responsibilities?

Not successful ones, every corporation have short, mid and long term strategies that must work hand in hand. An executive that ignores the long term won't be around long.

.

Well, I'm probably not well enough versed to continue the conversation. And my ego can't afford any more of a beating. I can leave you with the words of Alan Greenspan who unquestionably has more knowledge in business than I.

FRB: Speech, Greenspan -- Corporate governance -- March 26, 2002
Not surprisingly then, with the longer-term outlook increasingly amorphous, the level and recent growth of short-term earnings have taken on especial significance in stock price evaluation, with quarterly earnings reports subject to anticipation, rumor, and “spin.” Such tactics, presumably, attempt to induce investors to extrapolate short-term trends into a favorable long-term view that would raise the current stock price.

CEOs, under increasing pressure from the investment community to meet short-term elevated expectations, in too many instances have been drawn to accounting devices whose sole purpose is arguably to obscure potential adverse results....

 

[OKTexas]

If you have to ask that, you are clueless as to the CEOs job in a publicly held corporation.

.

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

It applies to all forms of businesses except sole proprietorships.

.

I see. And so in your opinion maximizing short term profits at the expense of long term value investors is not something corporate managers participate in, because of their fiduciary responsibilities?

Not successful ones, every corporation have short, mid and long term strategies that must work hand in hand. An executive that ignores the long term won't be around long.

.

Well, I'm probably not well enough versed to continue the conversation. And my ego can't afford any more of a beating. I can leave you with the words of Alan Greenspan who unquestionably has more knowledge in business than I.

FRB: Speech, Greenspan -- Corporate governance -- March 26, 2002
Not surprisingly then, with the longer-term outlook increasingly amorphous, the level and recent growth of short-term earnings have taken on especial significance in stock price evaluation, with quarterly earnings reports subject to anticipation, rumor, and “spin.” Such tactics, presumably, attempt to induce investors to extrapolate short-term trends into a favorable long-term view that would raise the current stock price.

CEOs, under increasing pressure from the investment community to meet short-term elevated expectations, in too many instances have been drawn to accounting devices whose sole purpose is arguably to obscure potential adverse results....

The one thing about the long term, your short term mistakes will always show up. I guess you think investors and board members are idiots.

.

 

[Tehon]

I didn't see where Windship stipulated that the company was in the form of a publicly held corporation.

It applies to all forms of businesses except sole proprietorships.

.

I see. And so in your opinion maximizing short term profits at the expense of long term value investors is not something corporate managers participate in, because of their fiduciary responsibilities?

Not successful ones, every corporation have short, mid and long term strategies that must work hand in hand. An executive that ignores the long term won't be around long.

.

Well, I'm probably not well enough versed to continue the conversation. And my ego can't afford any more of a beating. I can leave you with the words of Alan Greenspan who unquestionably has more knowledge in business than I.

FRB: Speech, Greenspan -- Corporate governance -- March 26, 2002
Not surprisingly then, with the longer-term outlook increasingly amorphous, the level and recent growth of short-term earnings have taken on especial significance in stock price evaluation, with quarterly earnings reports subject to anticipation, rumor, and “spin.” Such tactics, presumably, attempt to induce investors to extrapolate short-term trends into a favorable long-term view that would raise the current stock price.

CEOs, under increasing pressure from the investment community to meet short-term elevated expectations, in too many instances have been drawn to accounting devices whose sole purpose is arguably to obscure potential adverse results....

The one thing about the long term, your short term mistakes will always show up. I guess you think investors and board members are idiots.

.

On the contrary, I think they have smartly manipulated the game in their favor. I think the casual investor has drawn the short straw.

If I may be permitted to draw from Alan Greenspan once again.

FRB: Speech, Greenspan -- Corporate governance -- March 26, 2002
By law, shareholders own our corporations and, ideally, corporate managers should be working on behalf of shareholders to allocate business resources to their optimum use.

But as our economy has grown, and our business units have become ever larger, de facto shareholder control has diminished: Ownership has become more dispersed and few shareholders have sufficient stakes to individually influence the choice of boards of directors or chief executive officers. The vast majority of corporate share ownership is for investment, not to achieve operating control of a company.

Thus, it has increasingly fallen to corporate officers, especially the chief executive officer, to guide the business, hopefully in what he or she perceives to be in the best interests of shareholders. Indeed, the boards of directors appointed by shareholders are in the overwhelming majority of cases chosen from the slate proposed by the CEO. The CEO sets the business strategy of the organization and strongly influences the choice of the accounting practices that measure the ongoing degree of success or failure of that strategy. Outside auditors are generally chosen by the CEO or by an audit committee of CEO-chosen directors. Shareholders usually perfunctorily affirm such choices.

 

[Natural Citizen]

What we have going on isn't Capitalism. Nor have we ever really been in a situation where pure Capitalism was permitted to flourish.

What we have going on is Mercantilism. Unfortunately, most people just don't know that. And so Capitalism gets a bad rap when it's really Mercantilism causing all of the pain.

 

[Tehon]

What we have going on isn't Capitalism. Nor have we ever really been in a situation where pure Capitalism was permitted to flourish.

What we have going on is Mercantilism. Unfortunately, most people just don't know that. And so Capitalism gets a bad rap when it's really Mercantilism causing all of the pain.

 

[OKTexas]

It applies to all forms of businesses except sole proprietorships.

.

I see. And so in your opinion maximizing short term profits at the expense of long term value investors is not something corporate managers participate in, because of their fiduciary responsibilities?

Not successful ones, every corporation have short, mid and long term strategies that must work hand in hand. An executive that ignores the long term won't be around long.

.

Well, I'm probably not well enough versed to continue the conversation. And my ego can't afford any more of a beating. I can leave you with the words of Alan Greenspan who unquestionably has more knowledge in business than I.

FRB: Speech, Greenspan -- Corporate governance -- March 26, 2002
Not surprisingly then, with the longer-term outlook increasingly amorphous, the level and recent growth of short-term earnings have taken on especial significance in stock price evaluation, with quarterly earnings reports subject to anticipation, rumor, and “spin.” Such tactics, presumably, attempt to induce investors to extrapolate short-term trends into a favorable long-term view that would raise the current stock price.

CEOs, under increasing pressure from the investment community to meet short-term elevated expectations, in too many instances have been drawn to accounting devices whose sole purpose is arguably to obscure potential adverse results....

The one thing about the long term, your short term mistakes will always show up. I guess you think investors and board members are idiots.

.

On the contrary, I think they have smartly manipulated the game in their favor. I think the casual investor has drawn the short straw.

If I may be permitted to draw from Alan Greenspan once again.

FRB: Speech, Greenspan -- Corporate governance -- March 26, 2002
By law, shareholders own our corporations and, ideally, corporate managers should be working on behalf of shareholders to allocate business resources to their optimum use.

But as our economy has grown, and our business units have become ever larger, de facto shareholder control has diminished: Ownership has become more dispersed and few shareholders have sufficient stakes to individually influence the choice of boards of directors or chief executive officers. The vast majority of corporate share ownership is for investment, not to achieve operating control of a company.

Thus, it has increasingly fallen to corporate officers, especially the chief executive officer, to guide the business, hopefully in what he or she perceives to be in the best interests of shareholders. Indeed, the boards of directors appointed by shareholders are in the overwhelming majority of cases chosen from the slate proposed by the CEO. The CEO sets the business strategy of the organization and strongly influences the choice of the accounting practices that measure the ongoing degree of success or failure of that strategy. Outside auditors are generally chosen by the CEO or by an audit committee of CEO-chosen directors. Shareholders usually perfunctorily affirm such choices.

So he's saying share holder apathy is putting them at risk, sounds a lot like voters and the federal government.

.