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Tuesday, February 7, 2017

peak profit 3


PEAK PROFITS 3

More competition is a very real deciding factor in the across the board loss in profits for almost everybody.  If a factory making silicon chips costing $1 Billion plus must compete with other companies to the point business is tough, what hope do all the other Podunk jag-off’s using a lot cheaper businesses have of making much of a profit?  Just look at Subway sandwiches.  A mediocre food item, fake bread used as a salad container with a minimum of pressed and formed meat flavors ( when they started they were just a fast food deli and were a meal.  Now they are just another food like snack ).  They are one of the cheapest franchises to get into.  And as a result, they are everywhere, especially right in each franchise holders former customer territory.  Less entry cost, more competition.  Our town of 20k just got a second bike shop.  Which of course is retarded as the first one had to sell high end bikes to miners who would never use them but needed to spend whatever their trophy wives didn’t manage to piss away, just to pay the rent.  He also leases his lot to one of those overpriced rent to own outdoor shed manufactures, plus does U-Haul.  If one was barely making a profit, in a cold climate where only I and the homeless ride in winter, how can two?  This is duplicated in every location in every country in every industry.  Just another unintended consequence of overpopulation.

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Without having a boots on the ground understanding of specific industries, I’d still have to say that we have probably already seen Peak Automation.  What jobs can be replaced by robots or software have already seen the switchover.  At least speaking of the majority ( tweaking will still occur ).  Profits have been too constrained, while debt has been freely acquired, to assume otherwise.  It is a lot cheaper to sack a worker than buy a share of your competitor.  Of course, we are still seeing layoffs, the only assurance you can count on in a job anymore.  But the jobs aren’t being replaced, which is my point here.  They might be outsourced to another firm, saving a marginal amount, but a robot or a computer program isn’t why the job was lost.  I’m not sure why it is considered gospel that AI will replace all workers.  Moore’s Law finally soiled the sheets a year or so back, and if the people who programmed Windows are any indicator of the industry, no rocket surgery personnel are available to perform this miracle.  Really, it is all nothing more than a variation of Fracking Fags thinking we had another century of American Hegemony to fund their Social Security retirement.

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And last but probably not least but I’m pretty much done on this subject for now so it will have to be, increasing costs.  When a barrel of oil cost $10 in the ’90’s, and a pair of pleather boots cost $25, with $5 material cost, at most, a barrel of petroleum costing $40 still only makes a pair of shoes $20 in raw materials.  Yet, that $50 pair of boots lasts only half a year instead of three to five years.  So there is no way it costs $20 in materials to churn out that piece of crap.  Probably $10.  Yet, the shoe company isn’t making a profit.  So other costs must be contributing to the issue.  As retarded as CEO’s are, surely even they can see that selling garbage loses you customers.  It has to be an act of desperation on their part ( I hope ).  Obviously, more debt is leading to higher loan payments.  They bought as many machines as possible to minimize human labor costs, and the machines are probably going up in cost as those companies are seeing less sales ( as is everybody ) and must compensate.

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The shoe sellers are most likely seeing the same thing.  If supermarkets are saturating each market, so must sell higher profit items such as pre-made meals to stay in business, than a shoe seller too must sell higher priced footwear to keep paying the higher rent ( thank you asswhore bankers for jacking up real estate prices globally ) and utilities ( thank you Peak Oil and overpopulation and governments taxing anything nailed down or otherwise ) and CEO salaries ( not necessary as they are all morons of the first degree but somehow every board of directors thinks a higher paycheck will translate into higher profits.  Well, it does.  For the short period of time prior to bankruptcy after mismanagement.  Just like the whole country unable to continue maintaining infrastructure due both to lack of materials and money, so too are corporate assets allowed to decay due to lack of upkeep.  And that is just willful neglect.  Add in purposefully stripping the copper wiring from the structure for faster decay ). 

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Middle management is increasingly squeezed to eliminate positions, but by necessity every company still must employ extra layers of management to deal with the Frankenstein creation of mindless drones filling all chairs.  So much cover your ass and job security creation retards real work that nobody can do anything without extra bureaucracy.  Another added cost.  How many jobs are needed just because politicians and lawyers helped create them?  The entire medical industry is nothing but a profit center for litigators and Medicare bureaucrats.  Run a business lean and mean?  Right.  So many carrion eaters are trying to wet their beaks on your back that you don’t stand a chance in hell.  I could go on and on, but I think the point is made.  Too much debt, a shrinking customer base as unemployment is your new job, too much competition from overpopulation, as well as increasing costs as more mouths compete for less resources and the end of the robot revolution.  Profits? Faggitaboutit.

END

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1 comment:

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