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by andsoitis 311 days ago
> The missing dynamic is that businesses are encouraged to increase growth in profit YoY. > Each year, a business needs to grow faster than it did the previous year.

It is very reasonable for an investor or a worker wanting the business they have hitched their financial wellbeing to to do very well, which means growing profit. It gives the business more strength and stability.

2 comments

The difference between “I earned a tidy profit for me and my investors, as well as for my non-investor workers” and “I earned the maximum profit possible for me and my investors, moreso by denying workers as much of those profits as possible” compounds detriment at the difference in profit and wage growth rates, which steadily decreases the maximum profit possible to all firms due to household purchasing powerlessness. Eventually they’ll reach a lower maximum profit than could have be reached if they’d shared more profits as worker wages rather than as investor payouts. Oops.
I don't think anyone is disagreeing that this is what investors want. I think the point is that it ultimately becomes detrimental.