> Private companies are inherently less social since they don’t allow ordinary people to participate in growth.
Consider two possibilities. The first is, if you want to make money in an industry, you start a company in it. Lots of people start companies because lots of people want to make money and then there are lots of companies, causing the profits to be widely distributed.
The second is, if you want to make money in an industry, you buy shares of an existing company. You have to buy them from whoever currently owns it, so the ones who got in early become billionaires, meanwhile even if an ordinary person were to invest their entire net worth they wouldn't even own 1% of the company so they have so little influence over it that it isn't even worth their time to vote their shares, and therefore have no influence over it at all. But you still make some profit while not having to actually do the work of building a company, so more people do that instead of entering the market themselves and then there are fewer companies that are each bigger.
The second one leads to market consolidation and concentration of wealth and power, so which one is actually less social?
Consider two possibilities. The first is, if you want to make money in an industry, you start a company in it. Lots of people start companies because lots of people want to make money and then there are lots of companies, causing the profits to be widely distributed.
The second is, if you want to make money in an industry, you buy shares of an existing company. You have to buy them from whoever currently owns it, so the ones who got in early become billionaires, meanwhile even if an ordinary person were to invest their entire net worth they wouldn't even own 1% of the company so they have so little influence over it that it isn't even worth their time to vote their shares, and therefore have no influence over it at all. But you still make some profit while not having to actually do the work of building a company, so more people do that instead of entering the market themselves and then there are fewer companies that are each bigger.
The second one leads to market consolidation and concentration of wealth and power, so which one is actually less social?