So many companies cut their workforce as much as 10-15% citing that those jobs can be fully automated by the use of AI but I am still waiting to see any meaningful price cuts of their products from the said companies, etc.

Otherwise this will mean that they are doing this just to increase their profit margins and please their shareholders and don’t care about their customers or workforce.

  • intensely_human@lemm.ee
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    8 months ago

    The way supply and demand works is the thing that forces companies to give up profit is a competing company willing to take a little less profit (and hence undercut prices).

    It doesn’t work if there’s no competition, or insufficient competition.

      • intensely_human@lemm.ee
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        8 months ago

        It does work in the real world. That’s why food doesn’t cost a billion dollars a meal.

        That being said, the forced business closures we had a couple years ago definitely consolidated markets, reducing competition and driving prices way up.

        • Jojo@lemm.ee
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          8 months ago

          Sounds like there is a space for a competitor if anyone with enough capital wants to invest. It’s one industry, Michael. How much could it cost, ten million dollars?

          • bitwaba@lemmy.world
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            8 months ago

            That’s pretty much it in a nutshell. Anyone with the hundreds of billions of dollars necessary to compete in that space is already there, and doing layoffs.

      • force@lemmy.world
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        8 months ago

        exactly

        economics is a dumb field, we should get rid of it (and the economy)

        • intensely_human@lemm.ee
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          8 months ago

          Shall we drop a few asteroids on the planet while we’re talking about destroying ourselves?

          • afraid_of_zombies@lemmy.world
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            8 months ago

            Don’t defend economics, you aren’t being paid too. All of economic thought is either trivially true or brought to you by someone who has a motivation to lie.