Posted on 07/31/2017 8:56:30 AM PDT by Lorianne
edz04; asking the questions that get right to the heart of matter.
Thank you for your service.
Sure, but is that happening across the board throughout the economy? He’s talking macro numbers, not individual cases.
Sure but these are macro numbers overall
Well your HO is wrong in most cases. Steve Jobs didn’t sell the seed when he drove the development of new products at Apple, he created entirely new businesses through innovation.
That’s how it is done by the companies who are earning the highest profits. Investors aren’t dumb, they ask the right questions and don’t allow companies doing what you described to survive for long.
How ?
Lotsa cheap imports sold by our national chain stores ?
Nuttin 2 C here, move on.
Bingo, and they are very good at their jobs.
As an aside, Fortune's a left wing rag, and probably would be happy to piss on any parade that helps Trump.
It’s embarrassing that a supposed “Business publication” like Forbes would hire a person who is dumb enough to write this.
Stock buybacks with cheap money. No real growth, just fewer shares and higher earning per share.
An excellent point. It's not unlike what BO did to the DC area.
FR has more interesting stories, and more relevant, current info.
But cutting costs hurt the revenue of other companies and workers income. You can’t have it both ways.
“But cutting costs hurt the revenue of other companies and workers income. “
No, it does not. That’s a rather socialist view.
It is why the French do not allow people to be fired.
Quite the contrary. Steve Forbes is one of the best known supply siders and advocates a flat tax.
OK. Thanks for letting me know. I always thought no job meant no income, but correct how I am wrong.
How? 2 things not considered:
1) Maybe the economy is growing at greater than 2%;
2) Maybe these companies are getting significant sales outside of the US; and
3) The biggest reason is leverage. Not just financial leverage, but the natural per unit cost reduction that occurs as sales increase. R&D costs are static, once a product has been developed. The cost of the physical plant (including property taxes) of a company is static. Those 2 costs alone are a substantial part of any company’s costs - so if you have a gross profit margin of 30% or 50% on any particular good, then selling more units causes profits to go up much faster than revenues.
Well, OK, 3 things.
Haven’t had enough coffee yet.
Fewer and fewer paying for more and more.
If costs are fixed & there is extra capacity extra sales go mostly on the profit side and change the % profit drastically. Think of a school 10 students per class, 15 students per class minimal increased cost, still 1 teacher, same # hrs same class room, more desks. last 5 students almost pure profit.
Machines not idle, cost of supplies, the rest profit.
The author is really confused on basic economics.
That is a very simplistic view of business.
The workers that were laid off need to find other jobs. Or start their own businesses. We don’t have legacy businesses in the USA where once you are hired the company needs to maintain or elevate your standard of living.
Its in flux. Some companies are laying off workers to become more efficient and often paying the workers they retain better or improving their job retention prospects. Other companies are expanding or adding locations and the workers shift to those companies.
That’s why being in a growth economy is vital.
Raise EPS by stock buybacks.
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