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if they were paid for exactly the value they produced the firm would not profit as all the profit would be paid out to those generating it
by hmmokidk 2y ago
if they were paid for exactly the value they produced the firm would not profit as all the profit would be paid out to those generating it
- yieldcrv 2y agooh okay, if anyone anywhere suggested otherwise in this thread I'll let them know
- pests 2y ago> the firm would not profit as all the profit would be paid out to those generating it Then what is the firm doing at this point?
- deathanatos 2y agoIn theory, it could re-invest those profits into the company, in hopes of further gains down the road. (But like all things, there's a healthy balance.) In practice, I think the answer is "executive bonuses" and [short-term] "stock buybacks". (But morally I agree; there is no reason every company has to be Scrooge, and I think it's to their long-term unprofitability to be so, by effectively ensuring a lack of experience & growth within the employees generating the value in the first place.)