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Maybe Google is. I remember a time over a decade ago (before the insane 0% monetary policy started) when they were struggling to turn a profit. The business mod

Maybe Google is. I remember a time over a decade ago (before the insane 0% monetary policy started) when they were struggling to turn a profit. The business model did not change much since then and yet now they are profitable. It's possible that without this monetary stimulus, they would be unprofitable... Meaning destroying value; if that's the case then we can say thay Google is running a fictional business since it can only exist in this highly artificial monetary environment where it's receiving special treatment due to its ability to hoard eyeballs. Who is to say that hoarding user attention and online advertising is actually profitable? In a real monetary system where the money supply isn't in a constant state of rapid expansion.

Closi 5y ago
Google generates 180 billion in revenue, 140 billion of which comes from ads. None of this revenue is a government subsidy. > I remember a time over a decade ago (before the insane 0% monetary policy started) when they were struggling to turn a profit Well they have been profitable since 3 years after incorporation, so we are talking over 20 years ago. > The business model did not change much since then and yet now they are profitable. Well the industry, their market share, the number of clients and the number of ads served grew, and they refined their business model throughout. > Who is to say that hoarding user attention and online advertising is actually profitable? Google, based on the excess profits they have generated across the last 20 years to become one of the most valuable companies in the world. > where it's receiving special treatment due to its ability to hoard eyeballs. In economics that's called a competitive advantage :) It's not a coincidence that it gets eyeballs, it's part of their whole business model.
- cryptica 5y ago
  >> Google generates 180 billion in revenue, 140 billion of which comes from ads. The problem with looking at revenue numbers is that they ignore just how profoundly monetary policies affect the way the entire system works. A catfish may be a top predator in a lake, but put it in the ocean and it won't survive very long. The position of corporate proponents is to argue that a slight difference in salt content (I.e. interest rates) doesn't change anything when in fact it means the difference between life and death. >> Well they have been profitable since 3 years after incorporation Is it a coincidence that they started becoming profitable at approximately the same time as interest rates started to drop? If you compare interest rate charts with Google net income, there seems to be a strong correlation (with about 1 year delay for Google profits to react to changes in interest rates). >> In economics that's called a competitive advantage It's called having an unfair advantage by using your connections to governments to shape regulations and monetary policies to create an environment which benefits you and your large corporate customers from which you derive most of your income. BTW, you don't have to believe me. We will find out soon. The Fed is basically giving corporations free money by the bucket loads now, it's a matter of time before hyperinflation kicks in and we get a revolution. They've made it such that there is no incentive for anyone to do any productive work so everyone will stop working and start scamming just like the corporations are doing. Clearly it works and everyone is getting away with it.

Closi 5y ago

Google generates 180 billion in revenue, 140 billion of which comes from ads. None of this revenue is a government subsidy. > I remember a time over a decade ago (before the insane 0% monetary policy started) when they were struggling to turn a profit Well they have been profitable since 3 years after incorporation, so we are talking over 20 years ago. > The business model did not change much since then and yet now they are profitable. Well the industry, their market share, the number of clients and the number of ads served grew, and they refined their business model throughout. > Who is to say that hoarding user attention and online advertising is actually profitable? Google, based on the excess profits they have generated across the last 20 years to become one of the most valuable companies in the world. > where it's receiving special treatment due to its ability to hoard eyeballs. In economics that's called a competitive advantage :) It's not a coincidence that it gets eyeballs, it's part of their whole business model.

cryptica 5y ago
>> Google generates 180 billion in revenue, 140 billion of which comes from ads. The problem with looking at revenue numbers is that they ignore just how profoundly monetary policies affect the way the entire system works. A catfish may be a top predator in a lake, but put it in the ocean and it won't survive very long. The position of corporate proponents is to argue that a slight difference in salt content (I.e. interest rates) doesn't change anything when in fact it means the difference between life and death. >> Well they have been profitable since 3 years after incorporation Is it a coincidence that they started becoming profitable at approximately the same time as interest rates started to drop? If you compare interest rate charts with Google net income, there seems to be a strong correlation (with about 1 year delay for Google profits to react to changes in interest rates). >> In economics that's called a competitive advantage It's called having an unfair advantage by using your connections to governments to shape regulations and monetary policies to create an environment which benefits you and your large corporate customers from which you derive most of your income. BTW, you don't have to believe me. We will find out soon. The Fed is basically giving corporations free money by the bucket loads now, it's a matter of time before hyperinflation kicks in and we get a revolution. They've made it such that there is no incentive for anyone to do any productive work so everyone will stop working and start scamming just like the corporations are doing. Clearly it works and everyone is getting away with it.