Oct 10, 2019
On August 19, 2019 the CEOs making up the Business Roundtable issued a statement redefining the purpose of a corporation to add new stakeholders such as employees and consumers to the corporation's loyalty in addition to shareholder returns. Expecting praise from the left they got instead a letter from Senator Elizabeth Warren demanding tangible proof of the implementation of their intentions and a pledge to support her legislation to change the structure of capitalism in the United States. The free market has a self-correcting mechanism for when companies make mistakes. The government lacks such a mechanism and government mistakes are embedded in the administrative state with unintended consequences that last for decades. In this episode, the Edifice of Trust host, Victor Bolles, discusses the unintended consequences of well meaning legislation.