Like, Company A posts 5 Billion in profits. But if they post 4.9 billion in profits next year it’s a serious failing on the company’s part, so they layoff 20% of their employees to ensure profits. Am I reading this wrong?
In: Economics
Consider this on a greater scale.
Company A sees an increase
Company B sees an increase
Company C sees a decrease
A and B have grown larger, creating profit for their shareholders, and have a greater ability to expand. This is a great sign of longevity
Company C is now at a disadvantage, this is not a good sign of longevity.
This is amplified when you add in inflation. It costs more to produce your product, pay your employees, and to have facilities every year.
If you become stagnant while these costs are growing, you are actually making less.
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