Originally Posted by
jmmoric
That is not only an aviation thing.... it's called "capitalism" or "liberalism" at it's best. The thing we all swear is the saviour of this world, is beginning to show the signs of "old age"....
Maybe it's time someone sit down, look at how things work in the world, and see if it's possible to come up with a new philosophy that can actually handle the "problems" all the old ones generate...
Don't think capitalism is the issue, the problem is when short term financial metrics dominate all other considerations.
It is almost always a lot easier and more lucrative for management to goose the share price with a big stock repurchase program that to risk a new investment that may not pay off.
The pernicious longer term effect include a surrender of market position, but the culprits will likely have retired by then. Nearer term, the short term mind set drives efforts to minimize all costs, including worker compensation, development efforts and compliance standards.
Seen that firms that did take investment risks, such as IBM with the S360 or Boeing with the 747, were hugely rewarded, one must assume that there has been a loss of courage in the industrial management mindset, perhaps driven by pressures generated by 'shareholder activists'.
Perhaps punitive short term capital gains taxes might help return the focus to longer term investment, or incentives for longer term returns such as extended vesting schedules, but no consensus has yet developed on this.