Quote Originally Posted by maladroit
thanks for your patience in explaining that to me

buying more equipment to increase productivity makes sense, but as productivity increases due to new equipment, fewer employees are required to do the same work so joe the plumber and max the media tycoon will be firing people and pocketing the difference
That would be true if you're only trying to do the same amount of work. If you are a business and are trying to increase your profits during a period of growth for your business.. then it is very unlikely that you would fire that employee. Instead you can have the employee help out where you are lacking or take up new tasks all together that would benefit everyone in the company.

People don't realize this but in order to make money.. you have to spend money.

If you were making 250k a year and this new equipment allowed you to free up the work of 1 person... then you could choose to fire a person and keep making 250k a year or you could choose to keep them on, assign them a new task that would help increase your companies productivty and in turn maybe help your company make 275k-300k next year or more.

Most companies want to continue growing... most don't want to get smaller.