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by tharkun__
400 days ago
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It's the "ponzi scheme of capitalism". We're all playing because we've not come up with another better way yet. We've tried others but they weren't great either for various reasons / still are. It should be clear to everyone that you can't forever grow profits, even if you assume that you're the only company in that segment. At some point you simply run out of uncaptured market to grow from. But you "have to grow" and you even have to grow the rate at which you grow. Of course that leads to certain incentives. Especially if there actually are competitors in play. And then throw in inflation in general and some of your "growth" is actually eaten up by inflation too. If there's a winner somewhere that means there's a looser somewhere else. It applies in business overall and in the stock market. If you make a profit from selling high after buying low, there's someone that sold to you at the lower price and they lost (either they lost out on more growth or even made an actual loss overall because they bought even higher). The whole idea of "value add" is really just "exploitation" in various forms in many cases. You need a raw materials supplier to add your value. That raw materials supplier could've just taken the raw materials and "added value" themselves. But instead you got them to sell to you somehow and they lost (for whatever reason, such as missing knowledge, missing capital etc.). Over time that might change and they acquire those things and take over. Little by little. Bow you're the looser. |
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