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I a way, yes. The accumulation of capital through profit is apparently no longer necessary, but the right connections in banks that can create billions are necessary. I have suspected for some time that the investors that props up Uber and other so called unicorns are the last step in a chain that starts with a banks creating loans.

In another way, no. I suspect that if on goes back one can find a lot of these credit-created companies and I suspect that their portion has always been pretty large. If I recall correctly the German railroads were built to a large extent by companies that crashed and were taken over by banks. Those railroads were not financed by slowly accumulating profits, they were financed by credit. I don't know of any research to quantify how these poritons changed - not least because credit created companies has been seen as either an aberation (bubbles) or as pre-extending future profits, rather then a thing of their own.

But it sure is more naked now.

I like Varoufakis suggestion and would like to add that as companies grow they should be forced to take more stake holders on board.

Also 'All Power To The Soviets' was according to Goldman the anarchists rallying cry, that the Bolsheviks cynically co-opted, and then they undermined the local soviets (councils). The bakers soviets were apparently the last hold outs, working independently into the early 20ies, because otherwise the bakers striked, which meant no bread.

by fjallstrom on Fri May 7th, 2021 at 10:31:00 AM EST
The American railroad industry in the late 1800s suffered an almost continuous string of bankruptcies, reorganizations, and mergers. Even the mighty Union Pacific went broke a couple of times. Many US railroads have a history of name changes between "xx Railroad" and "xx Railway," for example.

The constant factors were the government subsidies in terms of land, financial, and legal protection, the massive flow of money into the pockets of the executives, the massive losses of the investors, and the lousy service provided to the customers.

by asdf on Sat May 8th, 2021 at 01:36:41 AM EST
[ Parent ]
Lincoln was making money as a lawyer from railroads well before he went into politics. It was highly convenient that the Civil War, the gold and silver of the west and the desire to add California as a state emerged when they did. I don't know if it even occurred to Lincoln that fewer railroads might have avoided the grotesque financial and operational problems that emerged, let alone the financial disasters that resulted from frequent railroad bankruptcies. And Lincoln did not live to see the worst of the worst. But the railroads were allowed to set the template for other large corporations when dealing with the government.


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat May 8th, 2021 at 01:46:20 AM EST
[ Parent ]
The above is well set out in Richard White's monumental 'Railroaded - The Trans-continentals and the Making of Modern America' Norton.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat May 8th, 2021 at 01:50:01 AM EST
[ Parent ]

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