Re:Why are US corporate profits so high? Because wages are s...
by eru on Tuesday January 28, 2014 @06:53AM
(#7136550)
Oh, I agree that hiring people and giving them an honest job is a very good thing in general.
I was just highlighting the principal agent problems. Managers like to hire people---because they can build their empire. Influence and status in most companies go up the more people you have reporting to you.
In this case, hiring more people seems to be in the interest of employees, managers and shareholders alike. Remember, selfish does not necessarily mean bad.
I was just highlighting the principal agent problems. Managers like to hire people---because they can build their empire. Influence and status in most companies go up the more people you have reporting to you.
In this case, hiring more people seems to be in the interest of employees, managers and shareholders alike. Remember, selfish does not necessarily mean bad.