it's been broken for 50 years
this post was submitted on 16 Apr 2024
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I'd say it's fundamentally broken being a capitalist economy, but looks like we're getting to the point where they can't keep kicking the can down the road anymore to pretend everything is fine.
If interest rates stay up, companies depending on low interest to exist might go bankrupt.
Which will lead to a new wave of layoffs, and then consumption will drop because people are going to start having saving money, which will lead to more companies going under. Welcome to the classic crisis of capitalism.
Those companies will be bought for pennies on the dollar. The only way large corporations innovate is to buy their competitors and their IP.
There's definitely going to be some of that happening. It's worth noting that a lot of the companies don't even have a business model though. This is especially true in tech sector where companies largely live of VC funding without being profitable on their own. Once that funding dries up, these companies go belly up real fast.
Nah, companies are supposed to fail regularly, it's not capitalism when you fuck with that and save companies that failed.
Capitalism is just a set of agreed upon rules that society evolves within. What we are seeing happening is the direct result of this system operating in practice. The reason the government is bailing out companies is precisely because the government represents the interests of the class that holds power, which is the capitalists.
Next stop, the Cool Zone.
