Not best for their workers perhaps, but improving profitability, unless you do so through rent-seeking (government subsidies, targeted tax breaks, barriers to competition, etc.), is generally good for the country, while unprofitability is bad.
If a company can produce the same amount with fewer workers (or it produces less with fewer workers because the real demand at profitable prices is less than previous production), than going with fewer workers is good for the economy.
If we had a policy of preserving all jobs at all cost, then we might have a lot more farmers, blacksmiths, and makers of horse drawn carriages, but that would hardly be good for the economy. Resources, including employees, should be shifted to places where they can be used profitably, or more profitably. |
