this post was submitted on 20 Jul 2023
128 points (96.4% liked)
Out of the loop
11037 readers
1 users here now
A community that helps people stay up to date with things going on.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Google needs to present growing profit for their shareholder. But ad revenue can only grow if you are alle to sell new ads. But there are not any new ideas for ads (like adWord etc) therefore they go down the road of „more ads“ to keep growing. What they needed was a new idea to offer another ad-concept that user liked and companies would pay for. But that did not happen. Goggle basically stopped innovating.
As I understand it the fundamental problem is that capital gains (via the increase of share value) is taxed less than income (via dividends). So shareholders want companies whose share values increase rather than companies that pay dividends, which is why there's the "need" for companies to always eternally grow.
If those taxes were more balanced then there'd be more of a niche for companies that get "big enough" and then just sit at that size steadily turning a nice profit year after year to give to their shareholders.