There was a gut wrenching article in yesterday's Washington Post, all about how the rise of investors in the assisted living biz are causing real human damage. And it has implications for the privatization of education.
I have said this all along. How to increase profits? Deny services. DUH! Why do you think there are so many new billionaires? Answer: hedge fund brokers have decimated (raided) companies with tangible assets. Ex: newspapers with buildings to sell, Greyhound bus terminals, hospital management managers, senior living facilities, medical and insurance carriers, AND “pseudo” schools. They are doing a good job of pillaging others who have little recourse.
I completely agree with this message. The interests of investors are often misaligned or even in direct contradiction with the needs of society and of human beings (workers and customers) in general. I disagree with your claim that "the free market has and can accomplish great things", or at least the underlying assumption that there is such a thing as a free market. Trade has long been an integral part of human cooperation, but there have always been laws and norms underlying that trade. What can accomplish great things are the social and legal conditions which prevent the abuse of power, whether that be military might, social status, or economic power, and encourage cooperation. A free market tends toward concentration of wealth and power as those with wealth use it to coerce and buy up competitors leading to worse conditions for everyone. A regulated market (either through government action, strongly enforced norms of behavior, or collective action from workers unions and consumers), should (though as you point out doesn't always in practice) align a company's goals with what is best for a society.
Exactly.
I have said this all along. How to increase profits? Deny services. DUH! Why do you think there are so many new billionaires? Answer: hedge fund brokers have decimated (raided) companies with tangible assets. Ex: newspapers with buildings to sell, Greyhound bus terminals, hospital management managers, senior living facilities, medical and insurance carriers, AND “pseudo” schools. They are doing a good job of pillaging others who have little recourse.
I completely agree with this message. The interests of investors are often misaligned or even in direct contradiction with the needs of society and of human beings (workers and customers) in general. I disagree with your claim that "the free market has and can accomplish great things", or at least the underlying assumption that there is such a thing as a free market. Trade has long been an integral part of human cooperation, but there have always been laws and norms underlying that trade. What can accomplish great things are the social and legal conditions which prevent the abuse of power, whether that be military might, social status, or economic power, and encourage cooperation. A free market tends toward concentration of wealth and power as those with wealth use it to coerce and buy up competitors leading to worse conditions for everyone. A regulated market (either through government action, strongly enforced norms of behavior, or collective action from workers unions and consumers), should (though as you point out doesn't always in practice) align a company's goals with what is best for a society.
"...the Texas teacher pension fund, made at least $30 million on its investment..."
Makes a retired teacher pretty queasy.