Lao K says every week – talking about things in the petrochemical design industry. Post 45: The modern corporate system has been exploited by those who are bold enough

Thread Content

Old K writes every week – Insights into the petrochemical design industry, Post 45: The modern corporate system is being exploited by those who are bold enough. The modern corporate system, namely limited liability companies, while contributing to societal development, is also revealing its shortcomings more and more often. People often hear that having many debts isn’t a problem ； The bold will starve to death, while the timid will die of fear. Now some companies end up with debts of tens of millions, hundreds of millions, billions, or even hundreds of billions. Despite carrying such heavy debts, the owners don’t seem to worry at all; they even appear carefree. The reason is that they have already made the profits they should have made and enjoyed everything they deserved, and they may even have transferred assets to keep them for themselves. Whether the company survives or not isn’t what concerns them the most. A tactic often used by bosses is to keep expanding and investing, using new loans to repay old ones, thereby inflating the bubble further and further. Eventually, when the bubble bursts, it leads to huge waste and environmental damage, with the ordinary people bearing the consequences in the end. Of course, it cannot be denied that some have achieved success as a result. One can observe the current situation: aren’t many companies having or undergoing frantic expansion? There are real estate firms such as X Da, X Yuan, X Di, X Chuang, as well as HNA, Qinghai Salt Lake, and even companies that have expanded abroad like XX Ting. It’s not only many private enterprises but also numerous state-owned enterprises that are keen on blowing bubbles; during their tenure in office, some leaders of state-owned enterprises were overly eager to invest in construction projects, and their motives are self-evident. It is recommended that economists spend some time studying ways to improve the modern corporate system. Tip: You can enter “Lao K’s Weekly Updates – Insights into the Petrochemical Design Industry” in the website’s search engine to view previous posts