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Culture War Roundup for the week of December 5, 2022

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Whether or this standard enables banks to do such—I would not expect them to jump on the opportunity. They are businesses, and what’s the motive for shooting themselves in the foot?

This is no longer a sufficient objection. Social media companies make money off views and attention. Why do they keep banning people that bring them lots of views and attention? Game companies make money of gamers, why do they keep insulting them and telling them if they don't like their liberal agenda, don't buy their games? Why do media companies keep acquired IPs to harness the profitability of their fanbase, and then putting writers on the project that hate the material and the fanbase?

The world is replete with companies in industries ostensibly "shooting themselves in the foot" if their only motive were raw capitalistic profit seeking. We have near a decade of them doing it anyways. Obviously, we do not live in the framework they teach in Econ 101.

I might need to re-read that, but... no he didn't. He's calling the opposite, the same old "it's just clicks for attention, bro" theory WhinningCoil is criticizing.

I wasn't posting it as a counter to WhiningCoil, but as an agreement: this has been "known" for a while, corporations do things that should rightly harm their bottom line and yet get rewarded anyways.

I don't think that's his point. As far as I can tell, they aren't getting rewarded, which is why the Econ 101 model is wrong.

Strong agree, and it really shows you how wrong most people's model of capitalism is.

Company executives operate for their own benefit, not for the benefit of shareholders. Unless you are Blackrock or something, a shareholder has absolutely no ability to voice their concerns at all. All they can do is vote for or against a slate of directors chosen by management. Nevermind that most people own shares in an index fund anyway.

Company executives have no desire or need to answer to shareholders. They act for their own social and financial aggrandizement. For a CEO to keep their job, it is necessary only to please the board of directors - a group consisting of social elites often chosen by the CEO themselves. That's why a company can "shoot themselves in the foot" by turning away paying customers with no consequences whatsoever. And its why Twitter can have 1000% as many employees as it actually needs. Because there is no need to return profits to shareholders. Shareholders have zero power and will take the scraps they can get.

Shareholder capitalism is an illusion.

Thank Marty Lipton for that. Corporate raiders were great agents of cutting fat. Lipton largely introduced measures to prevent agents from doing so.