It became popular with several corporations there were more important things than making a profit.
On the one hand, I agree. An individual life is more important than making money. Providing for the family is much more important than making sure I put enough into the 401(k) account this month.
Yet without making a profit, a company cannot sustain itself.
Ford recently stated it will lose $3 Billion on EVs while it expects to gross $9-11 Billion this year. This is to be expected as Ford and most of the auto industry are investing that the future is EVs. As more EVs become available and the ICE is phased out, Ford sees the EV division to be profitable by 2026.
At the same time, dealer networks are slowing their orders for EVs. It seems under the current economic conditions, the EV market is not growing.
In addition to this, at least in the United States, the infrastructure for such change is not being developed. Coal is out. Oil and natural gas land leases are not being renewed by the Biden Administration. There are no nuclear power plants in design or under construction in the USA.
So all the energy needs for the USA is found on renewables.
Renewables are not providing the power needed, nor will they in the near future. You only need to look to Germany to realize they are retreating to fossil fuels to meet their energy demands.
It may be nice to generate electricity for homes using solar and wind power, but wind and solar do not meet the energy demands required to manufacture iron ore, stainless steel, copper wire, and more. You need fossil fuels if you want to have a world-class economy (which means you are manufacturing products).
It seems corporate C-types are sold on these new technologies. But here is a good example of designing and manufacturing the complex just because you can.
I recently was speaking with friends within the jet engine powerplant manufacturing industry. The new engine coming on-line will be electric and will be powered by a generator. To turn the generator, the aircraft will need to produce hydrogen in sufficient quantities by splitting water into its two components, oxygen and hydrogen. The hydrogen will be burned in an engine to turn the generator.
I wondered whether it made more sense to use the hydrogen for a hydrogen-burning turbofan as they seemed to be adding steps to be adding steps.
But such is life when profit is not a motivator as you have endless Federal Reserve notes to bankroll the next project. Never mind a world GDP of $100 trillion chasing a world debt of $305 trillion.
On a global balance sheet, this would say Assets = Liabilities + Equities
$100 trillion = $305 trillion -$195 trillion
Typically, negative equity suggests a corporation is having financial difficulties and may soon be facing bankruptcy.
But – DAMN the torpedoes. We have a world to rescue from Climate Change. So what if the entire world looks like downtown San Francisco.
A friend of mine, one of the top marketing consultants in the world, suggests you spend 10% of a marketing budget testing new marketing approaches to determine whether they are superior to the base. Should multiple tests prove this superiority out, you make the new campaign your baseline and try again.
Instead, Ford is testing their future with 25-33% of their gross sales. And so is the industry.
You wonder what they would be spending if it wasn’t for government coercion, market manipulation, the manufacturing of fiat money and kickbacks.
But since the world is running at breakneck speed toward a chasm we may never recover from, it would be best for you to understand how to prosper in a socialist society.
A socialist society? Why that? We were speaking of economics and the auto industry. Here’s the reason – free societies devolve into dictatorships via bankruptcy.
So get yourself to Prospering in a Socialist Society by clicking on https://TedLeithart.com/prospering-in-a-socialist-society/ NOW!
