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#Post#: 19117--------------------------------------------------
Re: Obama scolds Staples
By: trollslayer Date: February 16, 2015, 4:12 pm
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[quote author=rapids_60 link=topic=1387.msg19112#msg19112
date=1424121605]
What eventually happens to a retail outlet with shrinking sales?
Look to Radio Shack for your answer. Profits were rising
while sales were falling. They couldn't close stores fast enough
to maintain profitability, the bottom dropped out and they exist
no more. This is a champagne party on the titanic.
It's also exactly what's wrong with our version of Capitalism.
Short term profits are the only thing that matters, not
long-term viability, not growth.... This is the example the US
economy should follow?
[/quote]
I don't get your argument, cutting waste to increase profits is
bad. Borrowing to increase profits is bad. Are you a caveman
incognito? :D
#Post#: 19123--------------------------------------------------
Re: Obama scolds Staples
By: rapids_60 Date: February 16, 2015, 8:50 pm
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[quote author=trollslayer link=topic=1387.msg19117#msg19117
date=1424124769]
I don't get your argument, cutting waste to increase profits is
bad. Borrowing to increase profits is bad. Are you a caveman
incognito? :D
[/quote]
Cutting waste is good. Closing hundreds of stores when you are
a storefront retailer is bad. You increase profits temporarily,
but it's a vicious downward circle.
Sales drop off so close more stores to increase profits. Sell
even less from fewer stores, close even more. Soon they are all
closed and you are out of business. Again...see Radio Shack.
There is one RS store left open because the franchisee refuses
to close it. :D
Borrowing to increase profits is fine. Provided you aren't
trying to make a deficit spending is bad argument, because
that's deficit spending.
Borrowing to jump start a national economy should also be fine,
for the same reason. (too bad the execution was screwed up).
Borrowing to fight an unnecessary war is not fine, as are lots
of things we waste borrowed money on.
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