Comment by gbacon
3 months ago
Regional and commercial jets cost tens and hundreds of millions of USD. The greediest caricature capitalist will want to protect this investment. Their insurers will demand certain terms to accept the risk of having to replace such a costly asset. Our greedy capitalist villain wants repeat business. Dead customers don’t pay again. Lawsuits are costly. Their friends and family will be reluctant to book fares with airlines they perceive as being unsafe. “Qantas never crashed.”
This just isn't true even in the already regulated environment.
It is "irrational" for a "greedy" slaveowner to kill their slave, a significant monetary investment sometimes, and yet it happened all the time, because capital owners are not rational.
A significant fraction of aviation fatalities can be traced directly back to those "greedy capitalist villains" actually completely cutting corners to save a penny and losing million dollar aircraft.
Business owners are not rational actors, they are gamblers.
None of this is true. A company left to their own devices will optimize for maximum profit at the cost of literally everything else. Every cost of their business that's possible to externalize will be externalized. Every corner will be cut in the name of marginally better profits.
For example, you say lawsuits are costly. To a company, that's meaningless. The only question is, is the cost of a lawsuit greater than the money saved cutting corners? If not, it's better to kill people and deal with the lawsuits: [1].
Moreover, companies are still run by people, and people have biases. Most notable of which is the short-term thinking bias that results in companies irrationally optimizing for short-term gains, compromising long-term ones. And what fits perfectly into that trap? Yep, safety. Do you know how much money you could save by delaying maintenance? Lots, lots of money to be had right now vs a nebulous concept of potentially higher chance of an accident at some uncertain point in the future. The monkey with its primitive brain chooses the immediate reward every time.
[1]: https://www.youtube.com/watch?v=SiB8GVMNJkE
> A company left to their own devices will optimize for maximum profit at the cost of literally everything else.
You probably meant public companies because otherwise this sentence and rest of your comment do not reflect reality.
According to [0] (2019), 90% of (6.1m) businesses have < 10 employees. Lawsuits are a very big deal to these enterprises. They are not out to kill people for marginal profits.
[0] https://sbecouncil.org/about-us/facts-and-data/