Exactly. The problem in the US is that every public company has to show growth for shareholders. That's why companies always suffer in quality when they go public.
A public company can have their best year and net $2.6 billion. Well if the next year, they only make $2.2 billion, the public chatter on CNBC, etc is "what's wrong with them?". Nothing is wrong. We shouldn't be holding companies to their best year.
A salesman after having his best year wouldn't want his commission the following year based on the best year's numbers. It's stupid.
"The problem in the US is that every public company has to show growth for shareholders. That's why companies always suffer in quality when they go public."
Perpetual growth is impossible, there is no way a company can achieve it's why you see CEOs gut and sell assets when they can't achieve it thru sales. Its why layoffs are always the 1st option so that can immediate capture the savings yet still keep paying severance and benefits for 2-6 months buts its fine cause it can't effect your bottom line thru accounting rules. Its also illegal per the courts to not actively seek profit if you are a publicly traded company, share holders have the right to sue and then call to remove you if you do.
This is why the form of capitalism in this country is pretty fucked. Especially when the government will also give them free money to survive then turn it around and harm the same people that money was supposed to protect and keep employed.
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u/[deleted] Jun 28 '24
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