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Bill and Melinda Gates Foundation backtracks on one-year parental leaves

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Re: Bill and Melinda Gates Foundation backtracks on one-year parental leaves

#411

Post by ben_jones »

geofft wrote: post #358
ben_jones wrote: post #311

Earlier quoted context omitted.

I think the most blatant scenario involves a code-base where only one engineer knows where the skeletons are buried. Yes it's bad architecture, caused by sustained bad development choices, but it is RAMPANT in our industry. If said engineer gets hit by a bus, or goes on parental leave, the company is fucked. They deserve it, but they are still fucked and they are going to kick and scream whatever excuse they can thin…

Sure, and it's good for society for those companies to fail. That's one thing that I think is missing in many argument about business policy. Many times someone says, with this policy passed, my business will be less productive and might even fail. And we're too scared to say out loud that that's a good thing. Markets works best when there is accurate and open communication of information, and it's generally very dif…

Businesses failing can hurt a lot of people. Thousands can be laid off, many of whom might not be in an industry where finding a replacement job is easy. Many organizations arguably exist solely to provide jobs regardless of their inefficiencies (in my view the TSA, and to some extent the US military).

Re: Bill and Melinda Gates Foundation backtracks on one-year parental leaves

#412

Post by geofft »

ben_jones wrote: post #411
geofft wrote: post #358

Earlier quoted context omitted.

Sure, and it's good for society for those companies to fail. That's one thing that I think is missing in many argument about business policy. Many times someone says, with this policy passed, my business will be less productive and might even fail. And we're too scared to say out loud that that's a good thing. Markets works best when there is accurate and open communication of information, and it's generally very dif…

Businesses failing can hurt a lot of people. Thousands can be laid off, many of whom might not be in an industry where finding a replacement job is easy. Many organizations arguably exist solely to provide jobs regardless of their inefficiencies (in my view the TSA, and to some extent the US military).

Propping up a bad business that would otherwise fail has two harmful effects:

1. The failure is greater and more impactful if it can't be held off forever. It's a lot better for society for fifty people to be laid off than a thousand. (It's probably better for those fifty people, too: their friends are less likely to be laid off and can provide immediate support, there are probably more open jobs, there's only fifty people competing for them and not a thousand, there's less loss of confidence in the industry, etc.) So failing fast is important. Ideally, you'd fail fast enough that the incompetent founding team loses their jobs and nobody else does.

2. There's usually a limited market / mind share for businesses, and it is hard for new businesses to get traction. The demand for, say, fast food within a given town is fairly fixed - advertising can make more or fewer people interested in it, but certainly there won't ever be more demand than three meals per day per person, and probably it will never get even close to that. So there's a limited labor market for fast food makers in that town. If there's an incompetent company employing a hundred people, and we prop up those jobs, we're likely preventing a more competent company from starting which could hire those same people and provide them with stabler and possibly higher-paying jobs. Worse, if the incompetent company is insolvent because they made bad pricing decisions, that company is probably out-competing other companies with more stable financial situations and preventing them from gaining traction.

So, if you don't want thousands of people to be laid off, it's good for incompetent businesses to fail as quickly as possible.

(The TSA and the military are government organizations, not companies, so the analysis is pretty different. Providing jobs to people for the sake of providing jobs is not a bad thing for government to do; providing that money without making them work is an even better thing for government to do.)

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