Another Look at Higher Sales Figures

If companies are reporting higher sales numbers over this time last year, or seeing their sales pick up after a series of rotten months, don’t run out and celebrate recovery just yet: check to see if their competition went bankrupt. Which it probably has. Which is good news for the survivors, but terrible news as far as real job growth goes. With fewer companies in business, fewer total jobs exist – and fewer total jobs can be created in the long run.

5 thoughts on “Another Look at Higher Sales Figures

  1. Matthew Wong

    wow since competition had died down, now strong companies have the advantage…. so if they become the only company making a certain “product” theyll have no competition and can tweak the prices.

  2. Nikkiah Guerra

    Yes to Matthew, but tweaking the prices isn’t an advantage whent there is no competive market. The survivors may rise their prices because they are the only ones in productivity, but then their own sales will decrease and they will have no profit. So, yahoo for the survivors who are sitting ducks with an A-Bomb fired right at them.

  3. Ariel Deval

    Also, less competition means less efficiency/quality,
    and then wouldn’t the rate of imports rise? Also damaging
    to the economy.

  4. Sagar Patel

    As I was going home today, I saw that Blockbuster was closing down which means that the sales of the other movie/game businesses will begin to have a sudden rise in sale. But we all know that Blockbuster is a huge company and if all of the stores go bankrupt, this will lead to a job shortage and thus an increase in unemployment in the long-run.

    Small, privately owned businesses are not included in this situation right?

  5. deanwebb Post author

    Right.

    Also, don’t fear the monopoly that much. If it makes a crappy product, people won’t buy it. The real danger in corporate power is how it’s used to purchase influence in government, and a corporation need not be a monopoly to do that.

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