Think what you want about Bezosā¦ for a single moment in history, he had a point of view I agreed with;
The interviewer just classically does not get itā¦ theyāre the type of person who will miss out on opportunity after opportunity because they just donāt get the most simple truths, even when they are plainly laid out in front of them. They are too busy arguing their own point of view, simply dismissing everything else instead of listening, thinking, and either adjusting their point of view or coming up with a valid argument.
Too bad that view didnāt remain (if he was honest to begin with). Post-purchase Kindle updates to force ads when off and forbid access to files except through their store. Make exclusive anticompetitive deals to force buyers and sellers to go through them. Undercut competitors at a loss until they go out of business to secure a monopoly with increased prices. Anti-competition, anti-competition, anti-competition until the customer experience is irrelevant because the customer has no other options.
Yup. I donāt believe that capitalism inevitably deteriorates into late stage capitalism, but laissez faire capitalism does. Need anti-trust laws to preserve free markets.
Fortunately, even while the mega-corporations become corrupt, there remain good companies, like yours. I really respect the way you share your knowledge and research, fostering a healthy competitive spirit where success isnāt about how much of the pie can be monopolised, but about everyone striving to add their best offerings to the table. Thatās how we keep getting more and better treats, and thatās a good customer experience.
The thing about capitalism is that it is only half of the āgreat economic systemā proponents always tout that it is. Traditional capitalism vs the post-1976 āshareholder valueā capitalism we have today necessitates heavy government regulation.
Old definition of capitalism
Capitalism is generally defined as an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit.
Key features traditionally associated with capitalism include: private property, profit motive, capital accumulation, competitive markets, commodification, wage labor, and an emphasis on innovation and economic growth.
Early forms of capitalism, emerging from agrarianism and mercantilism in the Renaissance, focused on trade for profit and the investment of private wealth.
While the concept of profit and capital ownership existed, the sole focus on maximizing returns for shareholders, at the expense of other considerations, was not necessarily the dominant paradigm in earlier iterations of capitalism.
Maximizing shareholder value
The concept of prioritizing shareholder wealth maximization as the primary purpose of a corporation gained significant traction later in the 20th century, particularly starting in 1976 with the era of āshareholder value capitalismā.
This perspective, famously articulated by economist Milton Friedman, suggests that a companyās main responsibility is to maximize profits for its shareholders within legal bounds.
This approach is often contrasted with stakeholder theory, which emphasizes considering the interests of a broader group of stakeholders, including employees, customers, suppliers, and the community, in addition to shareholders, in order to achieve long-term success and sustainability.
If the new āshareholderā based version of capitalism sounds a bit like the paperclip apocalypse, thatās because it kind of isā¦ reducing the operating principle of any corporation to a singular goal, even if it means eating its own customers in the process.
The version of capitalism we have now is like fireā¦ well controlled, it can be extremely useful, allowing comfortable living with minimal riskā¦ the goal of well reasoned government regulation is to stop out of control āshareholder valueā capitalism from burning everything to the ground.
I take more of the stakeholder theory approach, because in the end, itās how we all benefit while keeping some small chunk of our souls intact.
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