the purpose of a corporation, purely stated, is to maximize the profit for the stockholders.
I think your reply was better suited to me. I am the one who thinks offshoring in the US put the "stag" into the stagflation we are seeing now, and destroyed the stock market.
The issue really is maximizing profit, and what that entails, to me. 10 years ago we used to discuss how Japanese companies, who at that time were immensely profitable, had longer timeframes in mind when they managed profitabililty. This offshoring trend is back to that same line of thinking.
Sure, if you are a CEO of corp X, and you offshore every tech job you have, then for one or two quarters you are going to look like a star. The problem, as we can easily see now, is that if tech as an industry is your economy's entire engine of growth, and you offshore that growth - surprise - your economy stalls. Thats what we have in the USA. We offshored our recovery away, and with it, went our stock market esp our tech stock market. There's been a lot of whining in boardrooms about the state of the market, I wonder if anybody bothers to connect the dots or if they are still in a state of denial after all these years. |
