1min snip

"Upstream" with Erik Torenberg cover image

E1: Marc Andreessen on His Intellectual Journey the Past Ten Years

"Upstream" with Erik Torenberg

NOTE

Decentralization of Ownership and Control

As companies grow, there is a separation of ownership and control, leading to the rise of a managerial class. This separation results in ownership becoming dispersed and weak, with managers having more influence and control. This phenomenon is evident in public companies like General Motors, where millions of owners exist but a small group of top executives and managers effectively run the company. A similar scenario can be observed in politics, where voters are dispersed and lack individual influence or control, with the power lying with Congress and the White House.

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