That objection is already covered in the very title used by HN (" If the purpose of a company is merely growth"). It's also covered extensively in the article.
And your counter-analogy is wrong anyway: the whole human body is not "constantly growing" (it does this only or mostly for its first 2 decades, about the same time we stop getting any taller).
It's constantly renewing (in your words: "I shed old skin cells so need new ones"), which is different from growing (even if we say that we have to "grow" new cells - we also have to grow new plants to keep a farm going, but that doesn't mean that the farm itself has to grow - much less to endelessly try to find new profit avenues. It's the latter sense the article uses).
>If they don't then they will die, the same way I will die if my body stops growing new cells to replace the old one.
Which is neither here nor there, since "growing new cells" to replace old ones is not the same as growth in the commonly understood sense and the one used in the article. In the "growing new sells" sense, businesses without a "growth-above-everything" mission still "grow" (renew) lots of things: their stock, ocassionally introduce new products, find new customers, and so on.
And of course the examples the author gives of companies without "growth", have survived more (e.g. the Japanese companies operating for centuries), than companies that get gigantic and whose purpose is to maximize shareholder profit...
That's growth at a replacement rate. Cancer grows at the expense of, and with no regard for the cells around it.
Any investor with an "exit strategy" is similarly looking to exploit, not sustain.
That's not to say all growth is bad. People grow to adulthood. Similarly there is a natural size for a company. Beyond that growth is harmful.
Edit: replacement to avoid obsolescence is what engineering or product development does. Growth at companies is monitored by finance. Skin cells... Cancer.
The result is that you have companies playing on many fields, delivering low quality for the customer, but often still impacting the market because of their sheer size and market-power on other fields. It is indeed disputable whether this behaviour is really justified and good on for the customer, or more harmful.
Personally I find it very fitting and apt analogy for a lot of modern business practices. If the goal is growth only for the purpose of growth then that's pretty comparable to cancer.
Possibly even down to the ultimate consequences: Usually it's not the cancer itself that kills people, what's killing them is being starved by the cancer as they can't keep up supplying their body, and aggressive cancer, with enough nutrients.
Imho this analogy holds similarly true for businesses that have as their main focus perpetual growth, just like an economic system that's based on perpetual growth, while being stuck in a place where resources are actually finite and as such can't even realistically sustain perpetual growth.
One of the major problems in the modern west, especially the US, is that when crises have hit we’ve conflated helping “the people” with saving their employer. Imagine how differently things would look today if in 2008 there has been no bailouts for corporations, only direct aid to affected individuals.
To me, “too big to fail” is when we’ve turned companies cancerous.
Do you have a different example?
It’s better not to demand money from people and instead let them be free - the money you don’t tax will end up being spent on more goods and services, like how the average Swiss lives better than the average Norwegian, even if CH has no ports or natural resources, but instead has economic freedom
Bullying/exploitation is something you are forced to do when you are backed into a corner and there is no way out. Still, fast growing companies and enormously large corporations do it on a regular basis.
Wealth extraction is something you can do when there is enough for everyone. Smaller communities, such as families, small businesses and so on understand this very well. But parasitic behavior is apparently accepted in larger communities as it can hide behind abstract notions of hierarchy and ideology.
Taking large risks is something you can do when you are punching up or when you charter into unknown territory, truly innovate things. Just because a business uses software doesn't make it innovative though.
You’re not growing, if you were your energy consumption would raise in proportion. Your adult body is in a dynamic steady state.
What if your company was making enough money that you could pay everyone worked there generous salaries and your customers are happy. If you product is complete I don't see the need to add more. Why not let everyone work half time, and continue to deliver an excellent and focused product. Slowly adding features and integrations only as they make sense.
What we see instead by companies aiming to maximize profit is that they keep adding stuff that no one wants, hiring more people and squeezing every cent out of their customers. Sure, they make more money for a while but if you give me those two options I would much rather work half the hours and pay my employees more with happy customers.
I think that something like a universal basic income makes more sense here than to force a company to grow, possibly harming its product just to employ more people.
Its fake news similar to FTL.
The less competitive the market is, the less this is true But profit maximization = good should be the baseline.
I'm really confused that sometimes HN is full of libertarian comments but sometimes it suddenly turns to populist left. Mainstream economics is underrepresented on the internet despite it being most correct (imho obviously).
Can you point me to an example of a company that has a legal obligation "to (attempt to) maximise profit"?
I suspect that, in fact, the legal obligations of any company include (but are not limited to) increasing profit whilst taking into account many other factors.
That metric has been successfully gamed in startup sphere over the past decade.
However look at Apple. For a large part everyone in the US who wants an iPhone has one. Sure, there are some people who can't afford the high price but that seems to be a small portion. However because Apple wants to grow they are working on making their devices less repairable and implementing trade-in programs so that people upgrade more often (and they can destroy the old ones). Is this growth evidence that they solved a problem? It seems that the problem they are really solving here is raising the stock price. And I will argue that raising Apple's stock price doesn't really help the world at all.
I think the initial growth of the iPhone was a sign of a good product. However I think this demand for continual growth is harmful to society overall.