I think in a Jevon situation where there is a game-changing technology jump in a consumable commodity, there will be pent-up demand being expressed at the same time better efficiency means prices can decline and profits can rise simultaneously. This can be more sustainable if these factors are better in balance to begin with and stay that way. The improved efficiency is then enjoyed and absorbed into the regular operation of everyone involved and soon or eventually becomes the new normal. Ideally the companies never need to go back to the old normal which may likely not be very economically viable any more so that becomes completely forgotten.
But with growth beyond a certain point, cash flow becomes so significant and so many fewer people are handling it that the room for misguided actions, not just unforseen but often hidden or obscured, can quickly overcome the profits from much earlier technology milestones which took much longer for the entire org to implement. Which can not be replaced unless more technology breakthroughs are forthcoming, but even when a steady stream of excellent new technology keeps coming down the pipeline it could still be a sinking ship. Then if only the top people think it's not seaworthy, or know what they've done that might make it so, they're going to completely deceive the rest of the crew as effectively as possible or all the lifeboats could be used up.
When it comes to building cash flow, profits, shareholder value, and overall company valuation not every economically sensible executive is going to pursue or achieve the same balance among these, regardless of motivation.
When a company originally thrives because the early talent can make profits that are good, it can be the firm foundation for what could be long-term, even exponential growth.
Later leadership which does not always have equal talent for profits will often have more experience utilizing cash flow itself to substitute as a resource for bonuses, dividends, and things like that when much needed technology boosts are not the windfall they once were.
The net effect is people make money for a while then the technology is wasted.
Because profits actually weren't pursued enough, and cash flow too much instead
Like when a huge company acquires a rapidly-progressing technology group but no more progress occurs after that, or progress becomes intentionally discontinued or even reversed.
Like a gravitational field so massive that it draws in other planets and absorbs their potential for continued growth, rather than leveraging progress using the overwhelming resources.
A smallco that made excellent profits primarily from innovation itself, looks excellent on paper because it is actually a good acquisition target. When absorbed into a bigco their impressive profits no longer add up to more than a drop in the huge bucket so focus ends up being placed elsewhere besides the profit-making innovation that was supposed to be so promising.
But with growth beyond a certain point, cash flow becomes so significant and so many fewer people are handling it that the room for misguided actions, not just unforseen but often hidden or obscured, can quickly overcome the profits from much earlier technology milestones which took much longer for the entire org to implement. Which can not be replaced unless more technology breakthroughs are forthcoming, but even when a steady stream of excellent new technology keeps coming down the pipeline it could still be a sinking ship. Then if only the top people think it's not seaworthy, or know what they've done that might make it so, they're going to completely deceive the rest of the crew as effectively as possible or all the lifeboats could be used up.
When it comes to building cash flow, profits, shareholder value, and overall company valuation not every economically sensible executive is going to pursue or achieve the same balance among these, regardless of motivation.
When a company originally thrives because the early talent can make profits that are good, it can be the firm foundation for what could be long-term, even exponential growth.
Later leadership which does not always have equal talent for profits will often have more experience utilizing cash flow itself to substitute as a resource for bonuses, dividends, and things like that when much needed technology boosts are not the windfall they once were.
The net effect is people make money for a while then the technology is wasted.
Because profits actually weren't pursued enough, and cash flow too much instead
Like when a huge company acquires a rapidly-progressing technology group but no more progress occurs after that, or progress becomes intentionally discontinued or even reversed.
Like a gravitational field so massive that it draws in other planets and absorbs their potential for continued growth, rather than leveraging progress using the overwhelming resources.
A smallco that made excellent profits primarily from innovation itself, looks excellent on paper because it is actually a good acquisition target. When absorbed into a bigco their impressive profits no longer add up to more than a drop in the huge bucket so focus ends up being placed elsewhere besides the profit-making innovation that was supposed to be so promising.