- Sep 16, 2000
- Basic Beliefs
"Vulture capitalists" are a more complicated issue. I'll just say that it's silly to treat those people as evil. (And their activities often contribute to the economy.) Some European countries give employees (and perhaps customers) a voice in corporate decisions; perhaps the U.S. should adopt something like that to reduce the excesses of vulture capitalism.
I think there's a simple solution to severely limit vulture capitalism (which to a large degree is evil.) Mandate that debt comes before dividends. A company which has debt beyond simply accounts payable which are not past due is not allowed to distribute dividends. A restriction on how much a company that has debt can pay owners would also be needed--their profit should come from getting the company out of the woods, not from looting it. (I would, however, permit higher payments on a deferred basis--you can have that astronomical salary but it just goes on the books until the company is free from debt.)