Well it’s cannibalizing the company. You’re absolutely right about Boeing.
HP was another example. Fire all the engineers and R&D types, rush whatever’s already in the pipeline into production. You get a couple of fantastic quarters because you have new products without the R&D costs. But then you run out of new products in the pipeline and everything goes to shit because you killed your golden goose.
To expand on this- In general you must comply with the laws of any jurisdiction where you have a business presence. This for example Meta is a USA company, but they have offices in the EU and they sell advertising in the EU from EU offices so they have to comply with EU laws for EU users. They can’t just wave off and say ‘we are a USA company, EU regs don’t apply to us’.
Lemmy is not a corporation. There is no business presence in Texas, unless an instance admin lives there or hosts the server there. So Lemmy, both as a whole and as individual instances, can simply give Texas the middle finger and say ‘we aren’t subject to your laws as we have no presence or business in your state. We are in the state of California (or whatever) and are subject to the laws of our home state. It is not our job to enforce Texas laws in California on servers hosted in Virginia.’
Thus Texas trying to enforce their laws on a Cali company is like Hollywood studios sending DMCA notices to Finland.