I recently read this article in Yahoo News on Jamie Dimon's comments on a decline of public companies and how it might impact democracy. Jamie Dimon and Decline of Public Companies. In 1990's where were 8,000 public companies and now there is half. The trend is continuing and more companies merging so as to reduce the total diversity of business offerings and the type of products/services they produce (i.e. the niche and new markets).
Key Points:
-Mergers and Acquisitions
-Regulations and Compliance Costs
-Availability of Capital
-Help companies go public $1 to $5 billion.
-Entrepreneurship and innovation flourish with business diversity and growth.
Letter Shareholder from Jamie Dimon (Its big so get your coffee).
We also might look at some other trends that seem to fit within this discussion. Wealth concentration in the top .1% is at its highest earning on average $3.3 million annually. Visual Capitalist Distribution of Wealth
One solution is to redesign our regulations to encourage innovation and small business at the bottom while ensuring regulations at the top maximizes benefits to society. Likewise, we would need to have a level of political agreement that developing opportunities at various levels of the demographic spectrum will improve long-term economic performance of the nation.
(I have been discussing the need for broad based capitalism and universal democracy that encourages a highly innovative and inclusive society. That can be done by redesigning our policies and electing more diverse people to ensure we avoid group think or over influence in the political process that leads to these declining outcomes. Thus far its seen as a silly idea and theory that doesn't have much merit but I believe over time it will make more sense.)
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