{"id":22685,"date":"2016-05-22T08:27:32","date_gmt":"2016-05-22T12:27:32","guid":{"rendered":"http:\/\/ssgreenberg.name\/PoliticsBlog\/?p=22685"},"modified":"2016-05-22T08:27:32","modified_gmt":"2016-05-22T12:27:32","slug":"how-the-maximize-shareholder-value-myth-weakens-companies-and-economic-systems","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2016\/05\/22\/how-the-maximize-shareholder-value-myth-weakens-companies-and-economic-systems\/","title":{"rendered":"How the \u201cMaximize Shareholder Value\u201d Myth Weakens Companies and Economic Systems"},"content":{"rendered":"<p><em>Naked Capitalism<\/em> has the article <a href=\"http:\/\/www.nakedcapitalism.com\/2016\/05\/how-the-maximize-shareholder-value-myth-weakens-companies-and-economic-systems.html?utm_source=feedburner&amp;utm_medium=email&amp;utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29\" target=\"_blank\">How the \u201cMaximize Shareholder Value\u201d Myth Weakens Companies and Economic Systems<\/a>. The interview\/article has a link to one of the participant&#8217;s paper <a href=\"http:\/\/evonomics.com\/the-myth-of-maximizing-shareholder-value\/\" target=\"_blank\">The Myth of Maximizing Shareholder Value<\/a>.<\/p>\n<p>There is a discussion of how Milton Friedman and others introduced this myth to our society.<\/p>\n<blockquote><p>Consider first Friedman\u2019s erroneous belief that shareholders \u201cown\u201d corporations. Although laymen sometimes have difficulty understanding the point, corporations are legal entities that own themselves, just as human entities own themselves. What shareholders own are shares, a type of contact between the shareholder and the legal entity that gives shareholders limited legal rights. In this regard, shareholders stand on equal footing with the corporation\u2019s bondholders, suppliers, and employees, all of whom also enter contracts with the firm that give them limited legal rights.<\/p><\/blockquote>\n<p>Here is some economic thinking that Bernie Sanders would embrace if you asked him to enunciate how capitalism\/democratic socialism works.<\/p>\n<p>This is way outside the box of Clinton thinking. When she talks about economic plans that her advisers approve, I wonder if any of them take the premises of this article into consideration.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Naked Capitalism has the article How the \u201cMaximize Shareholder Value\u201d Myth Weakens Companies and Economic Systems. The interview\/article has a link to one of the participant&#8217;s paper The Myth of Maximizing Shareholder Value. There is a discussion of how Milton Friedman and others introduced this myth to our society. Consider first Friedman\u2019s erroneous belief that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-22685","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/22685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=22685"}],"version-history":[{"count":1,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/22685\/revisions"}],"predecessor-version":[{"id":22686,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/22685\/revisions\/22686"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=22685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=22685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=22685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}