Wednesday, September 15, 2010

Why does economics drive most companies?

In a capitalist free market, the greatest goal is to make the most income with the least amount of output. This income then not only puts cash in the fat cat’s pockets, but also allows a company to expand. Why would a company want to try and flourish without any economical benefit? Economics is simply the fuel behind the machine. One cannot continue to run their car without putting a little gas into it every now and again. Since we are in a free market, companies cannot even hold themselves afloat without an income. This revenue is made mostly through advertising (which is from other companies) as well as consumers buying said product. Unlike dictatorships, the government does not pay; and unlike British and Japanese governments, the US does not tax to pay for broadcasting. So we have created a dependent symbiotic relationship with the media. Consumers have grown to need to the media to carry on with their daily lives, and the media is dependent on the approval of the consumers to sell products or acquire further advertising. This creates the drive for economics.

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