Adam Gonnerman

If you'd asked me a week ago what I knew about private equity, I could have told you about Toys R Us. That company was acquired by private equity and then run into the ground. Now that I've read Bad Company: Private Equity and the Death of the American Dream―An Exposé of Private Equity's Devastating Impact on American Lives, Communities, and the Economy , I could probably tell you a lot more. This book isn't just about Toys R Us, though. The author, Megan Greenwell , deftly weaves the stories of four people together, from before their encounter with private equity, during, and then after as matters resolve. These are tales of retail, newspapers, hospitals, and apartments, all impacted through acquisition by private equity. But what is private equity? "In the simplest terms, 'private equity' describes a system in which a firm bundles money from outside investors—including university endowments, public pension funds, state-owned investment funds, and ultrawea...

The following is an adaptation of an essay I wrote a few years ago as part of my graduate program at Avila University .  Comparing an article by Milton Friedman written in the 1970s to one by a person in the 2000s seems a stretch, to say the least. The former won a Nobel Prize in Economics and was precise in explaining his ideology, and the attention-grabbing writing of our times doesn't hold up well in comparison, as I see it. And yet, I have to side with Joseph Hart on this one in saying that no, the sole social responsibility of business is not profits. Friedman argues that corporations are not people, and yet years later we are living with the consequences of the US Supreme Court deciding that corporations are people and entitled to all the same rights. Try putting a corporation in prison for any crimes, though, and you'll see the limits of its personhood. He then goes on to describe the purpose of a business to be making profit, and considers any use of funds for any p...

The world of business and trade, with its intricate transactions and multifaceted legal intricacies, may seem like a modern phenomenon. But if we trace back the threads of history, we'll find that trade has always been accompanied by its own unique set of rules and customs. One of the most fascinating aspects of this historical tapestry is the 'Law Merchant' or 'Lex Mercatoria.' Let's delve into its origin, significance, and legacy. The Origin: The Law Merchant began to take shape during the medieval period in Europe, roughly around the 11th to 12th centuries. As towns and cities grew, so did the need for a standardized system of commercial laws. Traditional local customs or feudal laws were ill-equipped to handle the complexities of growing trade. Thus, merchants themselves started developing their own set of customs and practices. Key Characteristics: Universality: One of the primary features was its universal nature. Since trade was often cross-border, it was...