Comment by fileeditview
4 years ago
It's a beautiful story but it's just the beginning. When he expands his enterprise by buying more and more trucks and hiring more people he then squashes all competition with price dumping, lobbying or just buys competing companies/individuals.
At the latest when he has a monopoly the company's services will deteriorate and the prices will rise. The customers won't be happy anymore. Also he will scatter so much salt on the roads that the ground water gets polluted. You see where I am going?
Of course it doesn't need to go this way but usually it does.
Serious question - what percentage of businesses do you think reach the nightmare scenario you've painted? You said that "usually it does" go that way. That seems to mean more than half - is that seriously your opinion of the 10.75 million companies that are in the United States?
I owned a computer service company for five years. I never did any of the things that you mentioned. All of my customers were small businesses and they never did anything you mentioned. You seem to be basing your opinion on the 1%.
I was talking about the giant multinational corporations that are basically unstoppable in whatever they do. The scenario I painted was about the never ending growth and its results.
The more I think about it.. if the company is traded at the stock market and controlled by shareholders it cannot be good anymore because the optimization of revenue is the core of everything now.
And with good I mean that it doesn't have interests that improve anything for the human race or the people of some country as long as these interests don't also align with optimizing profits.
By quantity of businesses, not most. By market cap, most.
Since dollars are votes in capitalism, market cap is the more relevant metric.
This is a great summary of what I wanted to express but didn’t have the words for.