Finance
Why Private Equity Should Not Exist
Interesting read on the history of PE (from 70s theory and legal changes to Regan de-regulation and tax law changes to LBOs) and what can be done to reign in the negative parts of their activities.
I’m troubled by what modern PE has become. Here’s to a return to actually investing (buying out) companies to fuel them. Let’s return to investor = owner.
What critics of PE are proposing is a profound restructuring of the philosophy of the American political economy, a return to excellence in production as the goal instead of excellence in manipulation. If critics succeeds, those who make and create will have their bargaining power increase radically, which will mean wage growth across the bottom and middle tier. Swaths of elite powerful people will lose power. It’ll be really jarring, because we aren’t used to a producer-focused economic order anymore. But it is what we need to do.
https://mattstoller.substack.com/p/why-private-equity-should-not-exist
