How is this any different than nvidia outsourcing semiconductor manufacturing to Samsung or TSMC? There's nothing inherently wrong with companies focusing on their core competency and getting out of low value parts of the value chain.
>airlines making most of their money from points schemes.
Is there more on this? I suspect this is just an accounting artifact. At the end of the day airlines are selling plane tickets. It's just that they're selling it for cash as well as points, which can be bought with cash. I don't see how selling points can be that much more profitable than selling tickets. Why would banks spend $2 worth of money to get points that consumers can spend to get $1 worth of flights?
>Then you end up in a state where a fair amount of the companies in the world are effectively controlled by the wishes of a few index fund managers. It seems there must be a better way for folks to ensure their ability to retire comfortably.
Passive index funds mangers have very little latitude to make decisions. They have to track the index, after all. Therefore I'm not sure what the issue is. Moreover if they decide to go rogue, thanks to "financialization" it's trivial to start another fund that acts in the interests of the shareholders.