Thread

1. NegativeK · 1789944184 · focus · HN ↗

   Can someone steelman private equity, please? I'm honestly looking for the upsides (for non-investors) of when PE moves into an industry like medicine and begins buying up businesses that traditionally aren't already large chains.

   I already hear the downsides frequently from someone whose work is directly affected.

   1. twoodfin · 1789944333 · focus · HN ↗

      The upside is to the folks who sold the businesses they owned.

      Should they be outlawed from selling to certain classes of investor? Which?

      1. Grombobulous · 1789944624 · focus · HN ↗

         It should be more about making certain levels of consolidation and deep erosion of local ownership illegal.

         We have run this country on an assumption that we must give businesses a high amount of freedom. An argument can be made that businesses have been given too much freedom in our system. We’ve allowed Amazon and Ticketmaster and Walmart to exist and they shouldn’t exist in their present form.

         Healthcare practices that provide necessary care shouldn’t even really be allowed to be for-profit entities if you ask me. The incentives become too perverse as a result.

         1. lotsofpulp · 1789945065 · focus · HN ↗

            Can you define profit? Would a doctor be allowed to earn more than $200 per hour? $300 per hour? $400 per hour? Is a doctor allowed to be paid per procedure or time?

            How much would you want to sacrifice your 20s and early 30s? How much would you need to work in the middle of nowhere where your kids won’t have the best opportunities?

            1. Grombobulous · 1789945128 · focus · HN ↗

               I updated my comment, I mean a for-profit entity versus non-profit, which the IRS already defines.

               Not-for-profit entities can still pay market rate wages to employees and owners.

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