How corporations work

He left out the part where the company does a giant stock buyback after layoffs to artificially inflate their share price. Somehow this is legal.

Was laid off when company was having record profits. I was informed by HR my role along with 400 others were being let go to "preserve profit and revenue streams".

it was fine 40 years ago when they wanted to play this stupid fucking shell game and regular people still had the ability to carve out a comfortable happy fruitful existence for themselves but now they’re unsatisfied unless they take everything and burn the planet to the ground so we can have nothing

In the US company have a fiduciary interest to maximize the profit for the shareholders. This is backwards from what a real functioning company actually works. 

The first and most important fiduciary responsibility is to the company's stability itself. The second is to employees, then customers, vendors, local communities and governments, and the final people the company should be invested in carrying about is the executive team and the final final is the investors. See companies work better when they properly take care of stakeholders. a full time employee is staking a much bigger chunk of their life and livelihood in a company than the executive team or the shareholders. Customers who buy a product and vendors who sell supplies are also essential to the life if a company. But investors really aren't important to the day to day. 

Fax

In a nutshell.

Checks out

Shareholder primacy is the most braindead economic philosophy to ever infest the minds of corporate America. And we have Dodge to thank for it, by suing the Ford Motor Company they enshrined a legal precedent that states that the main fiduciary responsibility of a publicly traded company is to increase shareholder value.

This is funny, but kind of dumb too. Imagine you have a special machine that spits out cash in your basement, $1000 per month. How much would you sell it for? There’s math to tell you the right answer based on your expectation the machine will keep working and how much inflation will factor in, but you can imagine how much this would be worth to you.

Now the machine spits out 10% more each year. Would you ask for a higher price now? Hell yeah.

Now the machine changes again, and will just give you $1000 per year for 5 years, then will start increasing by 10% per year. Would you accept a lower price than last time?

This isn’t magic. It’s just math and expectations.

Welcome to r/TikTokCringe!

This is a message directed to all newcomers to make you aware that r/TikTokCringe evolved long ago from only cringe-worthy content to TikToks of all kinds! If you’re looking to find only the cringe-worthy TikToks on this subreddit (which are still regularly posted) we recommend sorting by flair which you can do here (Currently supported by desktop and reddit mobile).

See someone asking how this post is cringe because they didn't read this comment? Show them this!

Be sure to read the rules of this subreddit before posting or commenting. Thanks!

##CLICK HERE TO DOWNLOAD THIS VIDEO

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.