It relly does pain me that Willy Hutton is a Governor of the old Alma Mater. Here\’s the intro to his Ownership Commission:
The Commission\’s starting point is that we believe that companies should be more than networks of contracts, and at their best they can be living, breathing human institutions held together by trust and a sense of common purpose.
Dear God Allfucking Mighty.
Look Willy, the LSE, that institution of which you are a Governor, produced an economics Nobel, a certain Ronald Coase. His Nobel was in part based on his ruminations upon the Nature of the Firm. A paper he wrote and which was published while he was at that very London School of Economics of which you are a Governor.
And the conclusion that Professor Coase came to was that firms, companies, exist when a mere network of contracts is insufficient.
You complete and total asshole: the existence of a company is proof that they are not merely a network of contracts. For if a network of contracts were sufficient for the task at hand then there would be no damn fucking company.
Can somebody tell me why this man is revered as an economic commentator when he\’s so obviously ignorant of the basic nuts and bolts of the subject?