This analysis¶

This analysis -- and really, this graph alone -- is perfect for understanding exactly why corporations refuse to just give striking workers what they want.

The key principle to keep in mind is that, to a capitalist, the RATE of profit is far more important than the VOLUME. https://t.co/JPhCcTKfyu Yes, the Big Three could give the workers everything they want and still make billions of dollars in profits. But in doing so, they would be forgoing many MANY billions more. This means that the amount of profit they make as a function of the capital invested falls drastically. Imagine you have a million dollars to invest. One company is pumping out profits at such a high rate that you predict that in 5 years, you will double your investment. Another just sacrificed 75% of its profit rate, and you can expect 15 years to double your investment. Now repeat this thought experiment for all 4,000,000 outstanding Ford shares, all 1,400,000 outstanding GM shares, etc. Why would any shareholder continue to keep their capital tied up in the less-profitable enterprises, when they could easily switch? The danger isn't even just other enterprises within the same industry. The rate of profit internal to a particular sector naturally tends to decline as labor-saving technological innovations permeate the industry (a topic for another day), and investors start to divest. Basically, these companies aren't just being greedy: they're engaged in an existential struggle. This struggle goes on every day, throughout the entire capitalist economy, and it drives increasing exploitation. This is why we can never be satisfied with mere economic concessions.