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OK but that's exactly how customers behave. You can say "this is silly" as much as you like but they're not bringing their dollars back anymore.

Indeed, the only one silly here is the manager not understanding this simple bit of customer psychology.

Apart from MBAs, politicians of today apply many of the same ideas, e.g. any kind of long-term planning is scrapped for fast results.

Not all politicians, but too many unfortunately.