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Originally Posted by dksuddeth
yes, I have. and my experience tells me that if i'm losing money, raising prices is not going to cover it. one has to cut their expenses so that you're not spending more than you take in.
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So? No business can spend more than it brings in. Aside from semantic issues, the real question here is whether accumulating debt is an acceptable way of bringing in money.
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I don't follow them, but i'm sure that they had quite a bit of capital cash from investors to follow through on their model.
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You don't think they accumulated any debt?
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want to know what happens to my cell phone and gas company when they raise prices higher than their competitors? they lose customers. then they lay people off. Its what they call reducing your expenditures.
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That's weird, my cell phone company just tacked on an extra $10 dollars to their data plans and it hasn't seemed to get in the way of their profit (as far as I can tell).
Really, though, my point in this threadjack was that businesses frequently utilize debt when it benefits them to do so. Our government is no different. Further, businesses are motivated by profit, and it would be massively stupid for us to motivate our government officials using profit.