The fixation on quarterly profit reports have ruined this country and it's largest corporations - ThreadSky

alanthefisher.bsky.social • 4 days ago

The fixation on quarterly profit reports have ruined this country and it's largest corporations

the people who wanted "everything run like a business" also transformed how businesses were run, and it broke those too.

(they transformed businesses into the idiot share-price maximizers of pathetically stylized economic models, which is not how most businesses actually functioned before 1970!)

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clovereddog.bsky.social•3 days ago

I agree with the sentiment of your thesis, but this makes it seem like corporations all of sudden got greedy. Imo, the govs inability to stop private equity/LBO firms along with failure to redistribute wealth which has caused stock prices to inflate is the primary cause.

davedeek.substack.com•3 days ago

It gets *worse*

Before the 1970s, America actually had extraordinarily effective management systems both in government and industry. The Bureau of the Budget's Work Simplification program in the 1940s focused on training front-line supervisors in systematic process improvement

davedeek.substack.com•3 days ago

The US Government also developed the precursor to Deming's Total Quality Management that Japan used to reindustrialize. We had such a rich history in getting stuff done, especially at the government level. Jack Welch and co tossed all of that away in the 80s and 90s, and here comes the worse part

davedeek.substack.com•3 days ago

Bill Clinton and Al Gore also decided to embrace the Jack Welch (but softer) way of short term cuts over long term gains. I am gonna be a bit shameless (and very lazy) and use an article I written which contains all of the links to my references

https://www.governance.fyi/p/process-and-performance-how-america

ejgustafs.bsky.social•4 days ago

The American is always early but gets greedy and stagnates

hsrgood.bsky.social•4 days ago

Also PEF have ruined any idea of businesses that are on the brink of bankruptcy to be saved from that, I can't think of one business that has been saved by private equity.

alanthefisher.bsky.social•4 days ago

Return to big corporations that had 5 year long infrastructure plans and shareholders believed in waiting

regimecpa.bsky.social•4 days ago

You have to remove the “disciplining” role of private equity to do that and also would likely need to empower index funds to vote on ESG issues pretty explicitly. The ESG analyst regime will save us.

hiei2k7.bsky.social•4 days ago

Everyone is afraid to step out from Reagans Shadow. California won't. Fed govt won't.

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