Re: To put it simply....
"Only if you assume that output is fixed and, well, it isn't."
But Ossi, you're assuming that demand is not fixed, when for a given price point, it likely is. If you start producing too many widgets, you're going to saturate your market and drive your price down, so you produce the same number of widgets, using less staff. More people chasing fewer jobs drives wages down, but less money in the workers pockets means less customers with the money to buy your widgets.
So there's no point investing money in anything, ever!
Hmm, I assure you, this holiday drinking hasn't intaired my impellect *hic*