Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
There isn't much in the essay to commend Ms Warren's sop to the disaffected, a "gigantic socialistic" plan to authorize unelected representatives of an unspecified group of persons to a list of a corporations directors --not even the stipulation that they shall be unpaid.
Consider the concept "a corporation has a legal duty to maximize shareholder value." There is debate about whether this is actually true.
It isn't true.

First, examine US Code; find the civil or criminal statute.

Second, examine Uniform Commercial Code (UCC) of the USA, mother of many "loop holes" that riddle corporate governance and conduct enforced by the several states; find a non-conforming Delaware regulation.

Third, examine US case law; cause of action in litigation by shareholders and so-called stakeholder (a revolting term, like "the marginalized," to disguise unenforceable contractual claims) typically allege fraud, a misrepresentation of fact, lying, by sundry corporate agents that results in an economic loss to owner title to a property.

No loss is the inverse of "profit maximization"; a loss is the destruction of a realized asset. Then again, we live in a society that counts foregone tax revenue as an expense, fff, before the first bond has been issued.

Warren (69) is playing to the rubes' passions like she did lording over the Congressional Oversight Panel, which destroying community banks, before sliding into the impotent Consumer Financial Protection Bureau, controlled by the FRB in point of fact. No, she is not my friend.

Diversity is the key to economic and political evolution.

by Cat on Sat Aug 18th, 2018 at 09:37:20 PM EST
[ Parent ]
It would leave the basic structure of American enterprise entirely untouched.
This is where the constructive author is supposed to stop, consider, and elaborate the organization of physical plant, equipment, and labor as pertains to the distribution of income and liabilities among the people engaged in the enterprise.

I want to learn something I do not know. The constructive essay who intends to persuade a reader that though Ms Warren's proposal inexplicably does NOT alter the "basic structure of American enterprise" --a hierarchy of distribution-- altering corporate by-laws to accommodate only seating for "workers" among directors signifies "caring."

archived US Constitution for "wage slaves"
Bank of the United States v. Deveaux, 9 U.S. 61 (1809), John Marshall for the majority
Corporations are people.

Diversity is the key to economic and political evolution.

by Cat on Sat Aug 18th, 2018 at 10:39:20 PM EST
[ Parent ]
The alternative for the enterprising author is of course to limit the scope of the article. Illuminating reactions indeed.

However I just happen to be working through my back log, specifically Unlearning Economic's list of articles that shaped his or her outlook.
In one of those Piketty's Capital is quoted:

It's bargaining power all the way down -- Crooked Timber

The lower valuation of German corporations also reduces the apparent wealth of German households. And why are German firms valued less by the stock market? Piketty and Zucman offer a suggestive explanation:

    the higher Tobin's Q in Anglo-Saxon countries might be related to the fact that shareholders have more control over corporations than in Germany, France, and Japan. ... Relatedly, the control rights valuation story may explain part of the rising trend in Tobin's Q in rich countries. ... the "control right" or  "stakeholder" view of the firm can in principle explain why the market value of corporations is particularly low in Germany (where worker representatives have voting rights in corporate boards). According to this "stakeholder" view of the firm, the market value of corporations can be interpreted as the value for the owner...

So it might be more of the demanding 2.50 when we are paying 2 school of communism.

by generic on Sun Aug 19th, 2018 at 08:43:11 AM EST
[ Parent ]

Diversity is the key to economic and political evolution.
by Cat on Sun Aug 19th, 2018 at 01:31:05 PM EST
[ Parent ]
I've had a bit of a nap and reread the article. I've noted additional comments and see your design.

By "interesting," I mean that I am always relieved, even pleased, to find someone examining the internal consistency of a theory or "ideology." That exercise, if argued, indicates to me that person is equipped to think for themselves with the very methods supplied by um western intellectual history (principles geometry in particular which, I confess, in my case were larded with some irritability by Mrs. Kaplan and my father). While I was rinsing out my garbage can (UK-Eng. rubbish bin) this afternoon, after my nap, I recalled a UID from the DKOS "era" of my life in innerboob commenting: NewDeal Democrat, I believe, confessed in a "diary" distrust of (neo)economic methods. It was remarkable at the the time. iirc, I replied that I was grinning from ear to ear.

In allowing oneself to think for oneself rather than accept dogmatic persuasions without criticism, one is capable of joining the many seeking an opening in the wet paper bag, so to speak, that binds them to unscrupulous enterprises. This has been observation has been addressed in a thousand more erudite ways. But to what end?

The question evades satisfactory answers at the moment so long as the "repeal and replace", the "supremacists", the "elite" or dominant faction studiously avoid cooperation on any account in which um surplus value may be harvested by exploiting the inexperienced, the ignorant, the stupid. And by "stupid" I mean only, merely senseless to (g) "growth"; growth of WHAT? WHERE? WHEN? HOW?

Forget WHY? That is Krugman's infamous Slide No. 10, for example, the "iron triangle," or "politics all the way down." This (macro)economic project of describing, rather than prescribing, universal wealth (credit) has been as successful as catholicism in deferring human teleology, rewards and punishments. Attitudes change before institutions. So it will be difficult to disabuse --with or without Piketty's 5lb tome of numbers or its "emanations" illustrating iniquity that-cannot-be-named-- the many, there is no alternative to the "laws" of economics as they've learned them.

Thinking is hard work. Autonomy is hard work. Communication is increasingly hard work.

However, the century is young.

Diversity is the key to economic and political evolution.

by Cat on Mon Aug 20th, 2018 at 12:03:51 AM EST
[ Parent ]

"Inequality and crises: coincidence or causation?"

< wipes tears >

Diversity is the key to economic and political evolution.

by Cat on Mon Aug 20th, 2018 at 08:27:56 PM EST
[ Parent ]


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