“Letting firms fail, and share prices fall to their market level, also provides younger generations with the same opportunities that we, Gen X and boomers, were given: a chance to buy Amazon at 50x (vs. 100x) earnings and Brooklyn real estate at $300 (vs. $1,000) per square foot. Just as we pretend our service men and women are heroes, and then treat them like chumps, CNBC advertisers and Peter Navarro want to pretend they give a sh[i]t about younger generations so they can protect the wealth of old people and management/advertisers. Enough already.”-Scott Galloway, “I’m not Done Yet!” profgalloway.com. March 19, 2021.
While I don’t subscribe to free market fundamentalism, the strength of capitalism is supposed to come from the creative destruction that comes from driving underperforming firms out of business. If you save those firms, then you have a form of socialism, and if you are going to have socialism, the question is who is the socialism for? If it’s geriatric and management socialism, one has to wonder why that’s the value.