Earlier quoted context omitted.
> You can't be not exploitative. This is not true. Specifically because you are pointing out that exploitative companies will retain more money than non-exploitative ones and thus not be beaten in competition. However, it is paradoxically also true that the same competition is beaten merely by high quality - leading to higher margins. Cost cutting is not the only way to squeeze margins. > Trader joes employees are no…
No, because if you're not exploitative that would mean you're producing exactly as much money as you're paying out to your labor, or less. This is impossible in a capitalist system, because you go under. It can be done and sometimes is, but we call that charity. I've seen some businesses that take 100% of their profit and just redistribute it to their employees. But they can never expand, only float, and the company…
This is an incorrect understanding of exploitation. Even in the most ethical corporation to have ever lived, 100% of the money earned will not go to labor. The money earned by a corporation is always paid out to
1. Employees/suppliers
2. Government
3. Shareholders
4. Company's own balance sheet
The exploitation part happens when companies cut on 1 to boost 2, 3, and 4. They do so to boost margins.
But strictly speaking, they could cut 2 via tax deduction maneuvers, cut 3 via shareholder return cuts, and cut 4 via plain old not saving more.
Cutting 1 is the most visible cut there is. Within 1, they could cut labor, quality, suppliers, advertising, what have you. Everything is shortchanging the company.
There are so many levers at play here. Exploitation only starts at stripping your company's assets (labor, loyalty, real estate, supplies, customer goodwill) in order to boost other aspects - usually 3 and 4.