I’m as pro-capitalist as you’ll find. Well, maybe there are a couple people. Anyways, one thing I noticed about corporations is that instead of REAL profit and growth being the prime mover (as we’re told) what really happens is that decisions are NOT made with the long-term reputation or security of the company in mind (reputation when you’re dealing with customers who have alternatives is pretty important) but stock prices and personal objectives.
Sure, my main concern is getting paid for the work I do but I wouldn’t do a disservice to a customer or the company just to make some more money.
So the execs get to go in front of the stockholders with numbers that may or may not accurately reflect the market or the company’s health AND you get managers who are interested in making a name for themselves then jumping right to another ‘opportunity’ so they can make even more money and step up the ladder.
There are some exceptions but they are usually when the founder is still a strong part of the company’s direction or when he/she is still the controlling stockholder.
I believe great wealth is built up over decades. Both increasing employees skill and building rock solid brand recognition. And of course research and development building over time, capital plant built over time.
Our B-school geniuses found they could gut companies and ride on the employee loyalty and built up brands for a few years making huge profits. Then things gradually erode.