View Single Post
Old 17.10.2019, 22:09
Posts: n/a
Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

View Post
It's just how successful business's work, Capitalism you either love it or hate it
If raw costs go up 10%, you need to increase sales or cut other expenses to reduce cost per widget to maintain your margin. If you increase price competition will reduce your market, very clearly happening with UK supermarkets.

Easyjet profits fell because fuel prices increased, they were unable to fill the planes at a higher price per ticket, ticket prices actually fell. Then the Airline industry as a whole is yet to make a profit in over 100 years, which is why I would not invest in an airline.
Except that profits are not just due to good old capitalism. Corporate welfare in the form of tax breaks, subsidies, write offs, yada yada yada increases profit - itís not just selling more X or selling X at a higher price.

Kind of like top down socialism, innit?
Reply With Quote
The following 2 users would like to thank for this useful post: