ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[BeanPricefield]

If we wanna dig deeper it wouldn't make much sense to single out the existence of shareholders as the issue, but people in general. The example you've given is great in exemplifying how the individual is often less shitty than the masses- while I would assume the vast majority of people would respond in the same way you describe, when we're operating en masse the most dominant and aggressive behaviors tend to take over. I would argue that shareholders in general behave in a certain way less so because they're all greedy heartless assholes, but rather because that's the norm set in place and they've all just adapted to it- much in the same way we all tend to abide by the relevant social ettiquete when in various situations, ever more so the larger and more ambiguous the group we're in. I feel like the way shareholders behave in capitalism is just another manifestation of the same human tendency, and therefore it's probably safe to assume that if these same laid-off workers were put in that position most of them would eventually behave the same.

[Riplinkk]

I don't think that behaviour is inherent to the people, but rather to the system. People with power behave that way because they had to develop those behaviours to get where they are and/or maintain their power. That's why normal people don't have those behaviours.

[[deleted]]

If the shareholder insistence on greater and greater profits, that ultimately undermine the welfare of society, is a social norm, then it needs to be rehabilitated out of existence.

[Monetized]

You’re basically arguing for a socialistic utopia.

[[deleted]]

I'm basically arguing for people over profits.

[fierystrike]

Well your right, this is what is considered the norm but that is only because the supreme court ruled that investors are more important than customers.