2009-04-19 — ml-implode.com
" Much of economic theory is flawed because its models assume people act rationally when of course they don’t. And yet economists and central bankers continue to make predictions based on these flawed models because, well, they don’t have better ones. Or the better ones that do exist yield inconvenient results that are more easily ignored than dealt with. Despite this, many of the rest of us continue to rely on discredited economists because, again, we’ve got few other choices."
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tvsterling at 10:21 2009-04-20 said:
A possible answer to these problems is to remove the incentive to sacrifice everything to the short term profit. How can a corporation grow it's business properly with the shareholders making unreasonable demands. The demands of the shareholders force reckless policies on corporations. They are bound by GREEDY shareholders to go for the short term profit at ANY cost. The drain on the corporation severely limits funds for their workers, capitol investment & for research. The answer lies in a simple adjustment to the Capital Gains Tax. Dear to the hearts of Republicans are cuts to the Capital Gains Tax. Alright, lets have one but use it to favor solid buy & hold investors over the quick profits crowd. Give a nice little package of stuff to people who hold five or more years & a little nip to the heels of the day trader-short term crowd. This should shift the emphasis to long term stability & real growth. Where the managers themselves are the problem some new laws re-empowering shareholders where executive compensation is concerned might work wonders. Make the shareholders more concerned with the company's long term future & give them the tools to act. Wagoneer thumbed his nose at the stockholders for years. Permalinkadd a comment | go to forum thread
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