Economies of scale allow us to get better pricing, to get a better margin on the product, and then to reinvest parts of that margin, either into a better customer experience or into lower pricing.
In other work, Mr Hart noted that workers and managers who look after equipment can make decisions to improve its productivity (like maintaining the machinery and investing in training) .
Because Rockefeller, because Carnegie were so wealthy, because they had so much money--they had more money than they could probably reinvest in their own companies-- they were looking for things to invest in.
Franklin wants to see a full-scale rebranding of the region, making the Mahoning Valley a center for electric-vehicle manufacturing that will bring job retraining, private investment and new technical jobs.
Unlike classic crony capitalism where the extraction of rents is paramount, Reliance's huge level of reinvestment mean its return on capital is modest: below 10% every year for the past decade.
The Fed changed tack in January, signaling a pause to rate increases and a willingness to reconsider the plan to allow asset holdings to steadily mature without reinvesting them.
The truth is that no one really knows yet how well spent the longer-term parts of the immense Recovery and Reinvestment Act will turn out to have been.
With this reinvestment of growth back into their infrastructure, Amazon saw returns on efficiency and cost, which fed the flywheel through the enablement of lower prices for customers.