this post was submitted on 30 Dec 2024
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cross-posted from: https://lemm.ee/post/51182148

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[–] [email protected] 3 points 5 days ago* (last edited 5 days ago) (2 children)

Let's say a company makes X amount in profits in 2024, and everyone—employees, shareholders, stakeholders—are happy and well-compensated. Why should the expectation be that profits must increase in 2025, even if the company is already performing well?

Many of the products and services that businesses depend on will or might raise in price. This is by design; most central banks target a low inflation rate, often around 2%. Without an increase in profits, raising prices on inputs will eat away at a business' profit margin.

[–] [email protected] 1 points 5 days ago* (last edited 5 days ago) (1 children)

Many of the products and services that businesses depend on will or might raise in price.

Many of those businesses shouldn't even exist, to begin with. cough the entire ad tech market cough

Maybe we should see increasing prices for energy... And let "the free and open market" fully control how much consumers pay for fossil fuels at the pump?

raising prices on inputs will eat away at a business’ profit margin.

Good.

[–] [email protected] 2 points 5 days ago

Maybe we should see increasing prices for energy... And let "the free and open market" fully control how much consumers pay for fossil fuels at the pump?

Although I'm all for letting free market advocates get fisted by the invisible hand they worship, high energy prices have arguably contributed to the wave of obnoxious populism sweeping the world. I'm not saying we should keep fossil fuels to cater to the angry and fearful; I'm saying the transition should be more managed, because the sudden economic disruption you suggest is politically fraught.

[–] [email protected] 0 points 5 days ago (1 children)
[–] [email protected] 2 points 5 days ago (1 children)

Because everyone wants infinite growth, including the companies supplying your inputs.

[–] [email protected] -3 points 5 days ago (1 children)

Incorrect, anyone that wants infinite growth is too stupid to breathe, much less be a part of a successful business.

[–] [email protected] 2 points 5 days ago

Yeah, take a look around bud.