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> Every reasonable company cancels projects not bringing in enough profits, since shareholders want to see a return on investment. Non-zero profit is not enough

• flushit 3y ago
  > I see very little reason in cancelling profitable projects. Happens all the time everywhere. Money wants to maximize profits. If company A brings you 2% return and company B 5%, then the money will gravitate towards company B. It's not that company A doesn't have profitable projects, perhaps all of their projects are profitable. But just less so than company B, on weighted average. And that's not bad. A reasonable society prefers to use its resources optimally. That's where market mechanisms and society objectives align, and that's why we are embracing a market-based economy. (There are other factors than profits of course, and that's where government regulation comes in. But all else equal, the above example of companies A and B holds and illustrates my point.) I encourage you to try a management role in a for-profit business and after a few years we can chat again. > Also, framing my comment as a "misconception" is kinda indisgenious. Sorry, I didn't mean to offend. I just see this line of arguments now and then and it seems to me that there is some fundamental knowledge of the involved mechanisms lacking.
  • deleted 3y ago
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