Comment by anigbrowl
3 days ago
There’s probably another name for this
Capitalism? Marx's core belief was that capitalists would always lean towards paying the absolute lowest price they could for labor and raw materials that would allow them to stay in production. If there's more profit in manufacturing mediocrity at scale than quality at a smaller scale, mediocrity it is.
Not all commerce is capitalistic. If a commercial venture is dedicated to quality, or maximizing value for its customers, or the wellbeing of its employees, then it's not solely driven by the goal of maximizing capital. This is easier for a private than a public company, in part because of a misplaced belief that maximizing shareholder return is the only legally valid business objective. I think it's the corporate equivalent of diabetes.
In the 50s and 60s, capitalism used to refer to stakeholder capitalism. It was dedicated to maximize value for stakeholders, such as customers, employees, society, etc.
But that shifted later, with Milton Friedman, who pushed the idea of shareholder capitalism in the 70s. Where companies switched to thinking the only goal is to maximize shareholder value.
In his theory, government would provide regulation and policies to address stakeholder's needs, and companies therefore needed focus on shareholders.
In practice, lobbying, propaganda and corruption made it so governments dropped the ball and also sided to maximize shareholder value, along with companies.