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haele

(15,067 posts)
2. Ha-ha. Why have your manufacturing acquisitions spend money making things
Tue Jan 18, 2022, 12:05 AM
Jan 2022

When your investment divisions can make more money turning them into pass-throughs - basically warehouses - for cheap offshore knockoffs. Better to turn that money that would normally have been spent making a quality product with a skilled workforce - building up a middle class that will buy your product and pay the taxes to support the infrastructure to build and sell your product - into stock buybacks and dividends to attract more investors that will throw money at you and make your quarterly earnings look better.
1990's/2000's MBA thinking. Economics teaches one that there's a multiplicative effect moving money around. So one can turn businesses into super money generating machines with Global Supply Chains, if one absolutely needs to produce something instead of trading around other people's money to make more money.

I'm being cynical, but I've seen too many capital institutions follow this neo-liberal economic playbook. Because Greed is Good.

Haele

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