Submitted 1 day ago by gigachad@piefed.social to [deleted]
Under capitalism, it seems companies always need to grow bigger. Why can’t they just say, okay, we have 100 employees and produce a nice product for a specific market and that’s fine?
Or is this only a US megacorp thing where they need to grow to satisfy their shareholders?
Let’s ignore that most of the times the small companies get bought by the large ones.
I’d highly recommend watching this video, it goes through the history of capitalism and why it is the way it is now
As a co-owner to a business, we grow because sometimes the funds from what we're already selling slow so we branch out in other directions to cover it. An answer for small businesses at least.
Ape brain usually goes “big = good” and therefore “bigger = better”. And since a bunch of other peoples ape brains have thought this before you, then now if you have a tiny business, it’s very likely that your only options are to either get trampled by giants or try and become one of them.
UndercoverUlrikHD@programming.dev 1 day ago
Assume you’re saving X amount of money each month for your retirement.
Your options for storing that money is either:
Assuming you go for option 3, would you choose to invest in a company with zero growth meaning your retirement fund won’t grow, or would you choose a company that is constantly growing?
Nobody would choose to invest in a company with zero growth or which doesn’t return money back in the form of dividends.
You’re objectively better off investing in companies that grow since those are the companies that will grow your investment.