A frequent criticism of the management of publicly-owned American companies is that they are too short term oriented, too focused on fast returns, and that this negatively impacts their long term capital budgeting. Can you suggest a company, or industry, where this appears to be true. How? Why?

A frequent criticism of the management of publicly-owned american

The healthcare industry is a prime example of an area where short-termism often takes precedence over long-term investments. Pharmaceutical companies, in particular, are often criticized for their focus on fast returns and quick profits rather than making the necessary long-term investments to develop new drugs and treatments. This emphasis on short-term gains can lead to reduced research and development budgets, which can have a negative impact on the overall health of the population. Additionally, this focus on fast returns can lead to higher prices for medications and other treatments that may put them out of reach financially for many individuals. This reflects a lack of concern for public health concerns or longer term profitability as opposed to focusing solely on short-term financial gain.