Re:Efficiency is dangerous and slowing down makes life better
by worik on Friday August 21, 2020 @08:55PM
(#24240626)
But it is not simple to find the "right" level.
You do not have to live for ever, so surviving a extinction level ecvent is more than the "right" level.
Being so brittle that the failure of one delivery kills you is less than the "right" level.
How long do you want to live? And when you die, how is it going to happen?
It is pleasing to see firms go out of business in a orderly fashion, such that they have the resources to shut up the shop properly, and every one in the business gets "onto the life-rafts". But it is more common to see businesses go down in a screaming heap with huge debts and big messes for others to clean up.
When I was at business school I was taught that a firm should have the correct amount of debt such that it maximised the tax shield of interest payments and had no fat that a hostile acquirer could use to do a hostile takeover.
That was in 2007. I am quite sure the course teaches something different now!
You do not have to live for ever, so surviving a extinction level ecvent is more than the "right" level.
Being so brittle that the failure of one delivery kills you is less than the "right" level.
How long do you want to live? And when you die, how is it going to happen?
It is pleasing to see firms go out of business in a orderly fashion, such that they have the resources to shut up the shop properly, and every one in the business gets "onto the life-rafts". But it is more common to see businesses go down in a screaming heap with huge debts and big messes for others to clean up.
When I was at business school I was taught that a firm should have the correct amount of debt such that it maximised the tax shield of interest payments and had no fat that a hostile acquirer could use to do a hostile takeover.
That was in 2007. I am quite sure the course teaches something different now!