On Fri, Jan 22, 2010 at 6:08 PM, Jim Devine <[email protected]> wrote: > raghu wrote: >>> The far-sighted capitalist works his employees moderately to maximize >>> their lifetime productivity, invests on R&D, infrastructure etc to >>> sustain profitability and pays his employees enough to keep >>> consumption levels high (but not enough to start accumulating) and his >>> workforce contented. > > A far-sighted capitalist aims to maximize his or her wealth. As a CEO, > this would involve maximizing salary, benefits, and the shareholder's > value.
No. A far-sighted capitalist will sacrifice some wealth maximization in order to make sure his children and grand-children will continue to live off of other people's toils. That requires that (a) healthy, well-trained workers continue to be available to toil for his kids and grand kids and (b) a decent economy and infrastructure is maintained to support a high standard of living for said grand kids. Consider this example of a private equity deal gone wrong: http://www.nytimes.com/2009/10/05/business/economy/05simmons.html The guy who founded this company and ran it profitably for decades is a far-sighted capitalist. The private equity guys who drove it into bankruptcy are dumb capitalists. -raghu. -- Eat the rich, the poor are tough and stringy. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
