You are forgetting that if PE weren't there to buy out local dentist offices at a premium, then these offices would sell at far lower price, making them affordable to the next generation.
When interest rates are low, it's most profitable to invest in extremely high risk, extremely high reward unicorn startups. That makes way more money on average than any long-run profitability. In fact, long-run profitability is basically never the most efficient use of money regardless of market conditions.
> So, what happens if person A is prohibited from selling their business?
I actually made that thought experiment. Disallow selling businesses. Disallow selling shares. Disallow stock market. Disallow mergers. The only way to acquire a business is to found it or to inherit it. The only way to quit a business is to shut it all down, with all assets liquidated, all liabilities settled, and all contracts terminated.
The main downside is that it's harder for to make money. Otherwise... I only see positives. And no, it wouldn't kill innovation. The investors would just have to invest the old fashioned way - by founding companies or expanding their existing businesses. As for job security, we already don't have it in the current system.
That's such an incredibly shortsighted view of the downsides.
In your model, the only possible business owners would be those with major capital resources to begin with, encouraging the spread of existing businesses into a sprawl: Walmart is now your doctor, pharmacist, and pharma manufacturer. Nobody would start a small business because they'd have to carry all liability, any new ideas are limited to spread at a glacially slow pace, because companies can't be aquired or acqui-hired, but can instead only scale on their own revenues.
It's worse than that. When the owner retires, all staff lose their jobs. That's a fairly big bummer.
I'm currently part of a "small" business/factory (around 50 employees). The owner is nearing retirement. Are all 50 of us gonna hit the streets tomorrow? Should our customers, many longstanding over 20 years get their contracts terminated? Do they get any warning? Can they easily switch to other suppliers? Is our offering somewhat unique?
Frankly, I think the thought-experiment is very incomplete if you can't see major downsides.
Recently, the owner of the factory my grandfather worked for the last 30 years has retired and sold their business, as a single package, fully operational, with employees and pending orders. It was still shut down and all employees were let go without any severance. From what I know, this is the norm for retirement sales, not the exception.
In this thought experiment, the result would be very similar to what happened, except with less wealth concentration, and with fewer Boeing-McDonnell Douglas mergers that ruin good companies in pursuit of short term profits (because short term profits are harder to realize by design).
Lost jobs are also a lot less of a problem in countries with functioning safety net.
> In your model, the only possible business owners would be those with major capital resources to begin with
Or you get a loan. Or you get an investor on board. How is that different from the current situation?
> encouraging the spread of existing businesses into a sprawl: Walmart is now your doctor, pharmacist, and pharma manufacturer.
It's happening anyway. My last vaccination was done 100% at Walmart.
> Nobody would start a small business because they'd have to carry all liability
How is that different from the current situation?
> any new ideas are limited to spread at a glacially slow pace, because companies can't be aquired or acqui-hired
Acquisitions are a relatively recent inventions, acqui-hires even more so. People have been doing massive inventions at rapid pace for like 200 years before being bought out by FAANG was a viable business strategy.
> but can instead only scale on their own revenues.
OK. Your job is from now is dung transport. Because you inherited it, whether you like it or not.
Sure, you are allowed to start a new business. But where would you get money? You can't sell your dung transport business, and you don't have enough money of your own to just start a new business from scratch.
It's crazy what some people will come up with just to have something to criticize instead of the actual contents of the thing they're replying to. Nobody said continuing an inherited business is mandatory, least of all me.
I am all for serious discussion about shortcomings of my idea. But this isn't it.
Yes. It absolutely does, because your system heavily favors inherited capital that HAS to stay within the family. It also heavily discourages capital mobility, risk-taking, and entrepreneurship.
Say "hello" to dynastic marriages, noble lineages, etc. The _best_ case is the system of medieval guilds.
It makes it impossible to share part of a business, including stocks. It also massively increases the friction of takeover by killing all employee, vendor, and client contracts, so the buyer cannot benefit from any of these without arranging for it separately. It also invalidates the strategy of leveraged buyout. But yes, it can be done in principle. Which is especially important in the "who will take over the local dentist's office" scenario - this system would heavily favor small business owners who want to do the business personally over holding corporations and PE funds.
Nope. It will result in a large company moving in and buying all the assets (still allowed), and forcing the employees to work for less money. Because why not?
You can sell all your offices, desks, printers, laptops, machinery, land, inventory, intellectual property, and anything else you want to your heart's content, to anyone you want, for any price you want. The only thing you can't sell is the legal entity itself.
My language has male/female/neuter in singular and male-person/everything-else in plural (e.g. singular dog is male and declines like boy, but plural dogs is non-male-person and declines like girls).
It used to have dual number, now it's just singular and plural. There are, however, exactly three words that use the dual number rules for its plural, even for N>2: hands, eyes and ears.
Programming was never about communication. It was always about making the machine do the thing we want. Back in the day, a good game programmer knew which time intervals had writable video memory and which CPU cycles drew which scanlines, and spent more time rearranging the code to hit these timings than to write the actual algorithm. Later programmers (I hesitate to call them good) learned everything there is to learn about OS internals and wrote theoretically nonsensical and invalid code that still worked thanks to those internals, to save CPU cycles and especially memory use. And the next generation of programmers took the principles of late binding and abstraction to the logical extreme and created architectures that cannot be described in words anymore, only in diagrams - but are crazy good for code reuse, traceability and A/B testing.
If a web browser allows images, then the website always has full control over how content renders. It's the default. HTML and related standards are trying to persuade developers to cede some of that control in the name of accessibility, user choice, searchability, device compatibility etc. that all-image websites lack. But this can only succeed if the developers still can do everything they want to. If they can't, then they'll fall back to images and everyone loses.
A lot of websites back in the 90s were just made up of images that were clickable using image maps. It was not a fun time.
I get what the parent comment is saying, though, and it's why I use Gemini (the protocol[0], not the AI). It doesn't align with corporate interests, but for now I consider that a good thing.
That’s fair! I think what struck me, though, is that what we’re seeing is large numbers of “wizards” jump ship to and actively promote “sorcery” instead, in this sense. That is, it’s interesting to me to see Dan Abramov, whose blog primarily consists of painstaking explanations of React internals based on the deep knowledge he developed over years as the most visible member of the core team, switch over to “do a breakthrough.”
I try to address this in the post explicitly in a few places.
Primarily I thought of this as a sort of "epistemic performance art project", maybe similar to playing Elden Ring blindfolded having never played it before, or speedrunning a game by opening a box a thousand times and overflowing some counter. It's funny and absurd to do knowledge work without the knowledge.
I think it's also a stress test of meta skills. Like, how much can we do without knowing? What kind of processes can we set up around these demons that would constrain them into our requirements? How can we know when things are going wrong? In some sense, this isn't too different from engineering management.
Naturally, I'm also interested in how much of my role in this could've been automated away. Can there be a skill for that? Then "do a breakthrough" is an irrelevant implementation detail of that skill.
Note that "do a breakthrough" actually produced the worst results over the runs. The best results were from more directed runs like searching for first obstacle towards the next milestone.
The wizards don’t become sourcerers themselves - they become enthusiastic users of someone else’s sourcery. Their years of learning don’t protect them from mistaking access to power for mastery of it.
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