So how do the hardcore leftists explain all the company bankruptcies that occur?

[Axulus]

How do the leftists explain why so many big companies fail? Every year, there are thousands of companies that fail which have multi-million in revenue.

These companies pay market wages and many of them have hundreds or thousands of employees, so they should easily be able to exploit these workers and get massive production well in excess of the wages.

These companies engage in marketing to easily manipulate their customers in buying more of their product and paying more money for it.

Many of these companies have wealthy owners or access to plenty of wealth in the form of banking connections and other high net worth individuals in their networks.

So why do so many of them fail if it is so easy to make massive profits using these tried and true techniques?

 

[CJW]

Every year, there are thousands of companies that fail which have multi-million in revenue

There are? I know small businesses and start ups fail at a decent clip but "thousands" of multi million companies?



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[Canard DuJour]

How do the leftists explain why so many big companies fail? Every year, there are thousands of companies that fail which have multi-million in revenue.

What CJW said, but never mind.

These companies pay market wages and many of them have hundreds or thousands of employees, so they should easily be able to exploit these workers and get massive production well in excess of the wages.

Dunno which "hardcore leftists" you mean, but the basic Marxist narrative is that they eventually can't sell the stuff at anticipated profit for precisely that reason.

These companies engage in marketing to easily manipulate their customers in buying more of their product and paying more money for it.

Which would require unsustainable credit, given the above.

Many of these companies have wealthy owners or access to plenty of wealth in the form of banking connections and other high net worth individuals in their networks.

So why do so many of them fail if it is so easy to make massive profits using these tried and true techniques?

Again, I think you'll find that hardcore leftists make nearly the opposite claim - tendency of profits to fall, cyclical crises, internal contradictions of capitalism etc (and I'm not necessarily putting those arguments myself, just pointing out that they're entirely consistent with what you're pointing out).

* * * * * * *

ETA : The problematic question is why, if profit is "surplus value" which can only come from labour, is it so damned profitable to automate? There are, by now, standard Marxist responses but they're a bit ..meh IMHO.

 

[Nice Squirrel]

Actually, I would be considered a conservative-centrist in most other countries, but if Obama is a radical socialist, I guess I am a far-leftist, so I will bite.

How do the leftists explain why so many big companies fail? Every year, there are thousands of companies that fail which have multi-million in revenue.

I'm not sure what you mean by "big". And we are talking revenue and not profits? -- Also, what is multi-million? 3 million? 150 million? most companies will do millions in revenue and still be considered small.

Can you give us an example or a list of these companies, otherwise there is no point in this analysis.

These companies pay market wages and many of them have hundreds or thousands of employees, so they should easily be able to exploit these workers and get massive production well in excess of the wages.

These companies engage in marketing to easily manipulate their customers in buying more of their product and paying more money for it.

Many of these companies have wealthy owners or access to plenty of wealth in the form of banking connections and other high net worth individuals in their networks.

So why do so many of them fail if it is so easy to make massive profits using these tried and true techniques?

You seem to be describing two types of companies - large corporations and large proprietorships. You do know that most of the largest companies are publicly traded corporations? Also without knowing which companies you are referring to we cannot take a broad look at why these companies are failing. (Changing market? Poor management decisions? Costs and competition? etc.)

I really like exploring why companies fail and why they succeed. If we had some kind of a list to know which companies you are referring to we could examine this question more in depth and actually find answers other than "worker wages" and "vultures at the top."

 

[Nice Squirrel]

Here is a company we can look at: http://www.nytimes.com/2015/10/06/b...n-region&region=top-news&WT.nav=top-news&_r=0

American Apparel, the one-time arbiter of edgy made-in-America cool, filed for bankruptcy protection early Monday, its business crippled by huge debts, a precipitous fall in sales, employee strife and a drawn-out legal battle with the retailer’s ousted founder, Dov Charney.

This is a Chapter 11 debt restructuring bankruptcy and the company is expected to stay in business. I think it is a good one to examine because, like most companies, the reasons are complex and there is no one place to put the blame.

 

[untermensche]

How do the leftists explain why so many big companies fail? Every year, there are thousands of companies that fail which have multi-million in revenue.

These companies pay market wages and many of them have hundreds or thousands of employees, so they should easily be able to exploit these workers and get massive production well in excess of the wages.

These companies engage in marketing to easily manipulate their customers in buying more of their product and paying more money for it.

Many of these companies have wealthy owners or access to plenty of wealth in the form of banking connections and other high net worth individuals in their networks.

So why do so many of them fail if it is so easy to make massive profits using these tried and true techniques?

Nobody ever said it was easy to set up schemes to funnel the fruits of labor to the top and steal from workers.

But companies fail because there is nothing special about the people running them. They is not this super-class of people that have special skills that justify their dictatorial control over others.

 

[dismal]

Nobody ever said it was easy to set up schemes to funnel the fruits of labor to the top and steal from workers.

Really? And yet so many average people with no special ability are able to pull it off...

What is hard about it? Can't you just hire a bunch of workers who are worth, say $15 per hour and pay them $10?

 

[coloradoatheist]

Nobody ever said it was easy to set up schemes to funnel the fruits of labor to the top and steal from workers.

Really? And yet so many average people with no special ability are able to pull it off...

What is hard about it? Can't you just hire a bunch of workers who are worth, say $15 per hour and pay them $10?

I did ask unter and the other two people to find a room with 50 other people and start a business since it's so easy.

 

[Nice Squirrel]

Really? And yet so many average people with no special ability are able to pull it off...

What is hard about it? Can't you just hire a bunch of workers who are worth, say $15 per hour and pay them $10?

I did ask unter and the other two people to find a room with 50 other people and start a business since it's so easy.

Why 50? I've done it with one, but you probably want to incorporate as soon as possible.

 

[coloradoatheist]

I did ask unter and the other two people to find a room with 50 other people and start a business since it's so easy.

Why 50? I've done it with one, but you probably want to incorporate as soon as possible.

Because they wanted to argue the fact that groups of workers are as efficient as the structures we have in place. It's easy to start a worker owned company with 1 person, harder but doable with 2 or 3, but as it goes up then it becomes progressively harder. While with the system that unter complains about, it's much easier.

 

[Loren Pechtel]

Every year, there are thousands of companies that fail which have multi-million in revenue

There are? I know small businesses and start ups fail at a decent clip but "thousands" of multi million companies?



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Multi-million isn't that high a threshold.

My former employer had about $30 million in sales in 2006. It didn't exist in 2010. I don't know the numbers for the years in between.

 

[prideandfall]

So why do so many of them fail if it is so easy to make massive profits using these tried and true techniques?

because despite what you and all the rightists around here would like to have happen, there is no law of nature or of man that requires people to prop up every business that exists and provide them with a minimum sustainable profit.

i know you guys all wish there were minimum profit laws in place, or that the imaginary hand of the Free Market would show itself more often by bestowing universal quarterly returns for every incorporated entity, but unfortunately for your world view reality just doesn't jive with that.

 

[Sarpedon]

I don't understand why we need to. Individuals and companies went bankrupt long before our current political situation existed.

 

[Don2 (Don1 Revised)]

Thread Title: So how do the hardcore leftists explain all the company bankruptcies that occur?

There are a lot of companies. Some do a cost-benefit analysis and as a result determine that filing for bankruptcy is in their best financial interest.

 

[braces_for_impact]

I see no reason why a leftist would be required to explain such a thing; any more than I would require a far-right capitalist to explain to me how if the economy is an ever growing pie, and all it takes to make it is hard work, why isn't everyone rich?

 

[coloradoatheist]

So why do so many of them fail if it is so easy to make massive profits using these tried and true techniques?

because despite what you and all the rightists around here would like to have happen, there is no law of nature or of man that requires people to prop up every business that exists and provide them with a minimum sustainable profit.

i know you guys all wish there were minimum profit laws in place, or that the imaginary hand of the Free Market would show itself more often by bestowing universal quarterly returns for every incorporated entity, but unfortunately for your world view reality just doesn't jive with that.

He and the others have no problem with businesses failing and going through bankruptcy. It's the left that thinks there is an unlimited amount of profit that companies have.

 

[Nice Squirrel]

Why 50? I've done it with one, but you probably want to incorporate as soon as possible.

Because they wanted to argue the fact that groups of workers are as efficient as the structures we have in place. It's easy to start a worker owned company with 1 person, harder but doable with 2 or 3, but as it goes up then it becomes progressively harder. While with the system that unter complains about, it's much easier.

Okay, I have no idea what you are talking about and I suspect this is a mutual issue.

 

[coloradoatheist]

Because they wanted to argue the fact that groups of workers are as efficient as the structures we have in place. It's easy to start a worker owned company with 1 person, harder but doable with 2 or 3, but as it goes up then it becomes progressively harder. While with the system that unter complains about, it's much easier.

Okay, I have no idea what you are talking about and I suspect this is a mutual issue.

Go to the other thread. Unter doesn't like the belief that the structure of current companies are the most efficient.

 

[Don2 (Don1 Revised)]

Okay, I have no idea what you are talking about and I suspect this is a mutual issue.

Go to the other thread. Unter doesn't like the belief that the structure of current companies are the most efficient.

So your interpretation of what one leftist writes is justification for you to write a sweeping generalization:

It's the left that thinks there is an unlimited amount of profit that companies have.

 

[ksen]

It's the left that thinks there is an unlimited amount of profit that companies have.

Here we go: unlimited pool of profits canard.