Wasn't there some law suit from Chrysler, who tried to _stop_ him doing that? Presumably because it would give workers too much wage setting power in the market?
what's wild is that it could be argued that this was in the shareholders' best interest as well, because it was in the best interest of the health of the company, but somehow that doesn't satisfy a "fiduciary duty"
When someone tells you "my hands are tied" it's always worth asking whether they made the rope
> When someone tells you "my hands are tied" it's always worth asking whether they made the rope
It's not worth asking, as they're lying and they know it. It does not mean every decision made has to be to maximize shareholder wealth. As you're pointing out, even if incorrectly interpreted as such, any decision could be justified as doing so besides outrageous cases of intentionally tanking the company. This, in turn, is why no business gets prosecuted over this either.
It didn't poison us at all, it's meaningless. Not a single one among the millions of societally-damaging decisions made by companies in the pursuit of profit ever since that case, was made because of that case. A. It doesn't mean companies have to maximize shareholder wealth. B. Even in the scenario that it did, it doesn't set a time horizon for this maximization C. Anything can be construed as being good for companies in the long run. And this is why no company ever gets prosecuted for it - it's a total non-factor.
As I write this, you're right, it has poisoned us; it has mistakenly made a number of laymen believe that this is one of the reasons why greedy, evil psychopaths such as Mark Zuckerberg and tens of thousands of lesser known names, behave the way they do, that law is to blame for their decisions.
You’re right, and I could be more precise. It’s poisoned the narrative to give business psychopaths cover. That only works as long as people believe the law will hold them accountable, which the CEO of UnitedHealth discovered is no longer true.
I mean, when the state prosecutes a case it styles itself "The People". Maybe the idea that justice can, should and must come only from The People isn't entirely frippery.
