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They don't, because the purpose of capitalism is to exponentially increase profits. Even if you want to give employees more money so they can buy the products t

They don't, because the purpose of capitalism is to exponentially increase profits. Even if you want to give employees more money so they can buy the products they make and strengthen the economy that enables your corporation, at some point the true purpose of capitalism (ABC - always be capitalizin') will reach a point where all the money is either held by the corporation or the employees, and the only way to increase profits is to take it from the employees. Which is why employee pay stagnates while corporate profits zoom sky high. Corporations do not value employees any more than the man turning a crank values the cogs.

adventured 9y ago
> They don't, because the purpose of capitalism is to exponentially increase profits. The purpose of Capitalism is free-association based capital allocation for generating a profit, not to exponentially increase profit. There is no arbitrary outsized multiplication definition attached, nor is there an arbitrary small level of profit under which it's no longer considered Capitalism. Costco and Walmart are blatantly Capitalist entities, they operate with minuscule 2-3% net income margins.
- peterwwillis 9y ago
  > they operate with minuscule 2-3% net income margins Which isn't evidence of the aforementioned point. I'll grant you "exponential" isn't mathematically correct - it's more a turn of phrase. But the profit margins here are strategic. Costco's gross income per square foot is much higher than Walmart's while their margin is half that of Walmart's. Costco is more valuable, and makes less profit. This is because Costco's aim is to provide the best value for its members [whom usually have more disposable income]. It does this by jockeying for the best bulk price, increasing efficiency, and providing good pay and benefits to its workers. Costco is a shining example of the idea of the corporation being a partner with the employees. Walmart's aim is to control markets, and does so by eliminating the potential for price competition and then using its buying power to force sellers to bow to its whims. Costco could make much more profit by treating its workers the way Walmart does, but chooses not to, because its value proposition is different. Costco will also probably not be able to compete for long, not because it isn't valued well, but because Amazon and Walmart will eventually take over every remaining obstacle to the consumer's wallet. Walmart is also slowly increasing its revenue per square foot so it doesn't have to keep fighting a losing battle online.

adventured 9y ago

> They don't, because the purpose of capitalism is to exponentially increase profits. The purpose of Capitalism is free-association based capital allocation for generating a profit, not to exponentially increase profit. There is no arbitrary outsized multiplication definition attached, nor is there an arbitrary small level of profit under which it's no longer considered Capitalism. Costco and Walmart are blatantly Capitalist entities, they operate with minuscule 2-3% net income margins.

peterwwillis 9y ago
> they operate with minuscule 2-3% net income margins Which isn't evidence of the aforementioned point. I'll grant you "exponential" isn't mathematically correct - it's more a turn of phrase. But the profit margins here are strategic. Costco's gross income per square foot is much higher than Walmart's while their margin is half that of Walmart's. Costco is more valuable, and makes less profit. This is because Costco's aim is to provide the best value for its members [whom usually have more disposable income]. It does this by jockeying for the best bulk price, increasing efficiency, and providing good pay and benefits to its workers. Costco is a shining example of the idea of the corporation being a partner with the employees. Walmart's aim is to control markets, and does so by eliminating the potential for price competition and then using its buying power to force sellers to bow to its whims. Costco could make much more profit by treating its workers the way Walmart does, but chooses not to, because its value proposition is different. Costco will also probably not be able to compete for long, not because it isn't valued well, but because Amazon and Walmart will eventually take over every remaining obstacle to the consumer's wallet. Walmart is also slowly increasing its revenue per square foot so it doesn't have to keep fighting a losing battle online.