Yeah, “capitalism” is when a the private equity firm buys the farm and now instead of producing enough to live on, or even just "as much as they did last year, now they must show year over year profits… Every year… Forever
Nah, private equity doesn’t care about profits every year forever. They want to squeeze the remaining juice out of something then throw it away. Something that’s sustainably generating profits year after year is a pipe dream compared to what private equity does.
For them, it would be something like have the farm sell its land to an affiliated entity, so the farmer now owes rent on the land in addition to the other expenses. Take the money from selling the land and invest in farming a crop that’s completely unsustainable but profitable in the very short term. Say something that needs so much water that the water table quickly drops and the wells no longer work after a few years, or something requiring massive amounts of expensive fertilizer. While that’s going on, fire all the farm workers who do any kind of maintenance or planning work. It doesn’t matter if the pumps stop getting maintenance, if the tractors are never serviced, if bills are paid on time. It doesn’t even matter if mold starts creeping in or vermin start moving in, as long as it doesn’t happen immediately. Arrange for the farm to pay the PE owners a management consulting fee that’s so high that after paying rent and 100% essential costs, there’s absolutely no money left. Eventually, when the farm collapses, declare bankruptcy and let all the creditors fight over the remains.
Yeah, “capitalism” is when a the private equity firm buys the farm and now instead of producing enough to live on, or even just "as much as they did last year, now they must show year over year profits… Every year… Forever
Nah, private equity doesn’t care about profits every year forever. They want to squeeze the remaining juice out of something then throw it away. Something that’s sustainably generating profits year after year is a pipe dream compared to what private equity does.
For them, it would be something like have the farm sell its land to an affiliated entity, so the farmer now owes rent on the land in addition to the other expenses. Take the money from selling the land and invest in farming a crop that’s completely unsustainable but profitable in the very short term. Say something that needs so much water that the water table quickly drops and the wells no longer work after a few years, or something requiring massive amounts of expensive fertilizer. While that’s going on, fire all the farm workers who do any kind of maintenance or planning work. It doesn’t matter if the pumps stop getting maintenance, if the tractors are never serviced, if bills are paid on time. It doesn’t even matter if mold starts creeping in or vermin start moving in, as long as it doesn’t happen immediately. Arrange for the farm to pay the PE owners a management consulting fee that’s so high that after paying rent and 100% essential costs, there’s absolutely no money left. Eventually, when the farm collapses, declare bankruptcy and let all the creditors fight over the remains.
Totally healthy and normal I see nothing wrong
All while reducing costs, often by skipping steps and ignoring safety.