As we still technically measure company’s success via revenue, and in a lot of ways we still measure progress with GDP, things like this still matter in the short run.
As China transitions into full socialism, I think that things like this will matter a lot less than simply resources and quality of life for employees.
We’re already starting to see China care less about GDP compared to other countries, although they’re still compared using GDP from a lot of sources, even internal to China. And while the success of companies is still dependent on profits, it’s still technically important that they have them.
To add onto the comment, having the revenue cover the operating costs is super important as the company will go down under if it isn’t true even in the short-term. It matters less when it’s the semiconductor industry as the state can cover short-term losses, but it’s important for other companies until we move away from money entirely.
As we still technically measure company’s success via revenue, and in a lot of ways we still measure progress with GDP, things like this still matter in the short run.
As China transitions into full socialism, I think that things like this will matter a lot less than simply resources and quality of life for employees.
We’re already starting to see China care less about GDP compared to other countries, although they’re still compared using GDP from a lot of sources, even internal to China. And while the success of companies is still dependent on profits, it’s still technically important that they have them.
To add onto the comment, having the revenue cover the operating costs is super important as the company will go down under if it isn’t true even in the short-term. It matters less when it’s the semiconductor industry as the state can cover short-term losses, but it’s important for other companies until we move away from money entirely.