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Richard Stallman's Political Notes

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Look at what hedge funds really do

lundi 29 mai 2023 à 01:02

The myth of Capitalism is that investors take risks with their money, so they deserve a big profit when the risk succeeds. I can go along with this to a point: we can't let the investors keep most of the wealth that a business produces — most has to go to workers and to the state.

Nowadays, private equity fund managers and similar "investors" have obtained plutocratist laws which assure them of profits even from failure.

This problem stems from another foolish general practice: the US has more or less given up on penalizing companies that do harm. Instead, the proposal is always to subsidize businesses that say they won't do the harm.

And governments don't even bother to insist that the business do what it was subsidized for.