ANDILE NTINGI: Investors aim to make money, not create jobs
Making a profit is the primary motive that sustains businesses, with the creation of jobs merely a by-product of the brutal nature of market capitalism
22 February 2023 - 05:00
Why do shareholders invest in companies? Do they invest to make money or to create jobs? A simple answer to these questions, which at first glance come across as rhetorical, is that shareholders invest to make money, not for the sake of paying salaries that eat into their profits.
Making a profit is a primary motive that sustains businesses, with employment creation a by-product of the pursuit of profits. Companies hire workers to help them add value and generate wealth, a portion of which is paid to workers in the form of salaries and other financial perks...
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