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by infecto
294 days ago
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Returns-chasing isn’t some moral failure, it’s the mechanism by which capital gets allocated. If you strip that out, you don’t get fewer “bad” companies, you just get less disciplined pricing of risk and more capital scarcity overall. On farming: margins aren’t simply “a choice.” Prices are set in global commodity markets, not by a farmer unilaterally. Thin margins are structural, and access to capital or insurance is exactly what helps them survive volatility rather than get wiped out. I am not sure why you think farmers get to set price on a commodity item. They don’t and because of that will often leverage future contracts or other hedges to bake in prices early. |
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I think it’s up to every participant’s discipline and that’s fair enough. If one sets prices in too much, another local farmer will sell more. If another local farmer undercuts on price, they’ll suffer more when times are tough and weather is bad.
> more capital scarcity
If there is a lot of capital knowingly feeding ethically problematic and/or incompetent companies due to an expectation of return (and then ensuring that return by promoting those companies), then less capital is absolutely better.
Regarding the rest of your comment, I’m not as advanced in this subject, so to me you seem to only list more issues with the system as is.