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I think to say the economy as a whole suffers is too broad, and falls into the trap of people who really are advocating a consumption oriented society. For ins
by MCRed 12y ago
I think to say the economy as a whole suffers is too broad, and falls into the trap of people who really are advocating a consumption oriented society.
For instance, you could spend your money constantly hiring more employees to do more work and to grow.
Or you could save your money, until you have enough to build a new modern factory that produces the product much more efficiently. That efficiency lets you pay your fewer employees more, but overall lets the business grow more reliably.
In your example, Company A is better for the economy because it will last a lot longer than Company B.
Companies failing does more economic damage than a company saving its profits for several years.