Better Offline The Shareholder Supremacy
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Jul 10, 2024 Ed Zitron discusses the impacts of Shareholder Supremacy on capitalism and tech companies. Topics include the history of growth-at-all-costs economy, Jack Welch's influence on capitalism, toxic management practices, layoffs, and prioritizing shareholders over innovation.
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The Dodge vs. Ford Case
- In 1916, Ford Motor Company planned to invest surplus capital in new plants and worker wages instead of dividends.
- Minority shareholders sued, leading to the Dodge vs. Ford case.
Shareholder Supremacy
- The court's statement on prioritizing stockholders wasn't legally binding, yet it shaped modern capitalism.
- This birthed the "shareholder supremacy," focusing on short-term gains over long-term sustainability.
Jack Welch's Rise
- Jack Welch joined General Electric in 1960 and quickly rose through the ranks.
- An explosion at a factory under his management, caused by his risky decisions, became a perverse "success" story.