The root of the problem is that it's hard to quantify engineering quality. That means it's hard for shareholders to hold it to a high standard to preserve long-term value. But it's just as hard for socialist planners to do that.
But there is a lot of regulation and supervision. It kicks in late in the cycle, though, because doing so early is a hard problem (e.g. detecting rot in the engineering culture).
Comments
The root of the problem is that it's hard to quantify engineering quality. That means it's hard for shareholders to hold it to a high standard to preserve long-term value. But it's just as hard for socialist planners to do that.
It's not about "socialist planners" but about market regulation and a thorough supervision. And sufficient deterrents.
But there is a lot of regulation and supervision. It kicks in late in the cycle, though, because doing so early is a hard problem (e.g. detecting rot in the engineering culture).