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Ted's avatar

What happens when Wall Street takes control over any small business of any sort, becomes obvious with application of the basic accounting equation:

Assets = (liabilities + owner equity.)

The credit side of the equation is the former, debit side the latter.

Strictly speaking, equity is not considered a marginal cost, but because it offsets assets, that is the net effect.

Framed more concisely; the business must provide the livelihood for those involved with operations. They are, in reality, the sole productive stakeholders.

The business owner is the primary stakeholder, also extracting a livelihood, whether ownership contributes to productivity or not.

When the number of unproductive stakeholders increases, the cost of doing business also increases.

There are meritorious arguments asserting that the debit balance represented by increased stakeholders, is offset by "economies of scale," but they apply only to individual businesses.

When conducting meta-analyses of ownership consolidation and concentration, monetary velocity at specific points of income distribution curves become a nontrivial factor.

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Mike's avatar

RIP Stan Brock

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Victoria C Esarey's avatar

Just so you’ll know that your words can cause action. Yesterday I transferred dental records to an independent I found from the post. A 30 minute longer drive, but financially worthwhile. Also, we a likely to see the same persons more than once.

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Larry King's avatar

Sorry. The next time I see my dentist I will ask him about ownership of his practice and his plans for the future. He is as old as me!

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Larry King's avatar

Thanks David, Matt, and Dr. Tanzi. My dentist use kleer.com, I guess to keep cash paying clients coming in twice a year. I have always seen my dentist twice annually, so it makes sense for me.

The next time I see my dentist

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