Labor is the source of all profit. How would the company make money if no one did anything? Companies use their control of the means of production to leverage workers into doing labor. They then sell what the labor creates to make money.
They didn’t create anything themselves. They had ownership of the means and that gives them ownership of the output that they profit off of. Money doesn’t just appear. Something has to be produced, which is done through labor.
Sure, sometimes an employee costs more money than they return. First, that doesn’t mean they created no value, just less value than they cost to employ. Second, sometimes this does decrease profit, but is done as a short term reduction of overhead while things change, or it’s just dumb business which isn’t uncommon.
Labor is the source of all profit. How would the company make money if no one did anything?
Charge the customer more for the finished product than what it cost to produce it. Obviously.
The simple fact is that if employees were a source of profit, businesses would all try to hire as many people as they possibly could, because not doing so would literally be leaving money on the table for no reason. But obviously that is not what goes on. When a business is in trouble financially, what’s more common, a hiring freeze, or a hiring spree?
Labor is the source of all profit. How would the company make money if no one did anything? Companies use their control of the means of production to leverage workers into doing labor. They then sell what the labor creates to make money.
They didn’t create anything themselves. They had ownership of the means and that gives them ownership of the output that they profit off of. Money doesn’t just appear. Something has to be produced, which is done through labor.
Sure, sometimes an employee costs more money than they return. First, that doesn’t mean they created no value, just less value than they cost to employ. Second, sometimes this does decrease profit, but is done as a short term reduction of overhead while things change, or it’s just dumb business which isn’t uncommon.
Charge the customer more for the finished product than what it cost to produce it. Obviously.
The simple fact is that if employees were a source of profit, businesses would all try to hire as many people as they possibly could, because not doing so would literally be leaving money on the table for no reason. But obviously that is not what goes on. When a business is in trouble financially, what’s more common, a hiring freeze, or a hiring spree?