They are responding to changes in demand. Do you think they have an obligation to make a loss in future if they made a profit in the past? What effect do you think this would have on their ability to attract investment, the interest rates they have to pay on loans, the costs of insurance?
Even beyond the business itself, profits mater. They are the surplus a business generates that gets plowed back into the economy outside the business. That money gets invested in other businesses, spent on other goods and activities. It's the fuel that goes into other beneficial economic activities.
Leaving it sunk in an unproductive business that's paying people to do less, and generating fewer outputs is a tax on the whole rest of the economy. It's invisible because it's investment and spending that never happens, but it's a real effect. It's true that those unproductive workers still get paid and that money goes into the economy, but if they were working in another job at a productive company or retraining, that's a net gain. That's can't happen if they're stuck in an unproductive job.
>If you ask me a good business keeps a safety net when times a good and uses their safety net when times are bad.
Any good business does this, but they need to take acton on foreseeable headwinds in order to maintain that safety net against unforeseeable ones. When it looks like times are uncertain and getting worse, possibly in unpredictable ways, is not time to give up your safety net. That's how businesses fail and the whole company goes under. How does that benefit anyone?
Even beyond the business itself, profits mater. They are the surplus a business generates that gets plowed back into the economy outside the business. That money gets invested in other businesses, spent on other goods and activities. It's the fuel that goes into other beneficial economic activities.
Leaving it sunk in an unproductive business that's paying people to do less, and generating fewer outputs is a tax on the whole rest of the economy. It's invisible because it's investment and spending that never happens, but it's a real effect. It's true that those unproductive workers still get paid and that money goes into the economy, but if they were working in another job at a productive company or retraining, that's a net gain. That's can't happen if they're stuck in an unproductive job.
>If you ask me a good business keeps a safety net when times a good and uses their safety net when times are bad.
Any good business does this, but they need to take acton on foreseeable headwinds in order to maintain that safety net against unforeseeable ones. When it looks like times are uncertain and getting worse, possibly in unpredictable ways, is not time to give up your safety net. That's how businesses fail and the whole company goes under. How does that benefit anyone?