That’s very simple. Public companies have investors the directors respond to. If the company won’t brag about profits, it will lose investments, reducing its competitiveness and starting a death spiral. If it will pay bigger salaries, it will lose money and won’t be able to brag about profits.
Our current economy is double crazy in that companies don’t just have to make stable profits to stay afloat, but to ever increase those profits at the expense of everything - including workers.
Does losing investors actually mean anything? They wouldn’t be there to begin with if the company didn’t already make money, and it’s only specific types of investors that literally don’t help a company at all that care about the company growing forever. A real investor just wants their money back plus however much they negotiated for over time.
That’s very simple. Public companies have investors the directors respond to. If the company won’t brag about profits, it will lose investments, reducing its competitiveness and starting a death spiral. If it will pay bigger salaries, it will lose money and won’t be able to brag about profits.
Our current economy is double crazy in that companies don’t just have to make stable profits to stay afloat, but to ever increase those profits at the expense of everything - including workers.
The entire system is insane.
Does losing investors actually mean anything? They wouldn’t be there to begin with if the company didn’t already make money, and it’s only specific types of investors that literally don’t help a company at all that care about the company growing forever. A real investor just wants their money back plus however much they negotiated for over time.
Paying higher salaries COULD lead to better profits but that’s risk and business don’t take risks like that.
🤡🤡