The US seems to have transitioned to a fully financial economy. Nixon and Reagan left to you a legacy that eventually will be America's downfall, just look how the Southern Strategy has eroded USA's democracy, Reagan's economic policies propping up the whole finance sector.
Nothing else matters more than finance, and it's shareholder value above everything else (consumer value, employees' well being, return to society be damned) is the ideology Welch instilled in generations of MBAs that went to control most corporations.
When everything is judged on a single metric it ends up eaten by Goodhart's Law, the corporate game is to manipulate the books well enough to increase share value, the finance market does not care if layoffs will impact the company's competitiveness in 5-10 years, the finance market does not care if the company is eroding their customers trust (e.g.: Google killing off products willy-nilly), if the books look good and costs are down while revenue is up then share price go up.
It will crumble, it's not sustainable, the main issue is when will it crumble and how destructive it will be for normal people.
Aren't all of them quantitative instead of qualitative? Every trader I know in Big Finance is basically creating/using statistical models based on books' numbers vs other books, not analysing a company's products and labour potential on a human level.
Nothing else matters more than finance, and it's shareholder value above everything else (consumer value, employees' well being, return to society be damned) is the ideology Welch instilled in generations of MBAs that went to control most corporations.
When everything is judged on a single metric it ends up eaten by Goodhart's Law, the corporate game is to manipulate the books well enough to increase share value, the finance market does not care if layoffs will impact the company's competitiveness in 5-10 years, the finance market does not care if the company is eroding their customers trust (e.g.: Google killing off products willy-nilly), if the books look good and costs are down while revenue is up then share price go up.
It will crumble, it's not sustainable, the main issue is when will it crumble and how destructive it will be for normal people.