That comment is not based on economics. Sounds like you think everybody running companies are a bunch of idiots who just run around making bad decisions. While I am sure there are some, that train of thought dies not represent the majority. Maybe some high profile examples have created that opinion but I don’t think it reflects reality. Opinions vary.
but I don’t think it reflects reality. Opinions vary.
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What you propose is the way is used to be and the way it should be.
The evidence supports my position.
It very much applies to our federal government. THEY NEED LOWER INTEREST RATES to cover up bad management decisions..
Yes, there are exemptions.
That comment is not based on economics.
I spent 40 years analyzing small business for profit management.
Big business deals with OPM which makes management decisions worse.
Has any of the low interest loans/grants helped a business become more profitable? They are rare. But the ones that bootstrap themselves without help are the survivors.
What I learned is most people/business are cash flow managers, not profit managers.
There is a huge difference between the two.
Now there may be a correlation between cash flow and profit or not. It depends on the individual.
Right now, individuals/small business/big business/govt is spending past and future wealth, not current earned profits.
It is pretty much cash flow Managment all the way. Forget what you learned about economics, there is MUCH more to it.
I grew up poor, still think/act like I am poor. The truth is I am should no longer be a wealth accumulator, but spend some of the moldy stuff. Some one is going to spend it foolishly: me, the nephews or the govt.
History has proven this.