> The problem is that profitable enterprises would democratically decide not to hire any more people since doing so would dilute their profits.
which is fine, because if hiring someone would dilute their profits, it means the new hire is decreasing the efficiency of the organization. Normally, you would hire if you find that the existing employees cannot complete all of the work required, as there's too much - aka, leaving business/profits on the table due to lack of room.
No, it doesn't: if there's that much demand for the company's products, someone else can start a competing company making the same products, presumably for less because with a monopoly supplier, prices will usually be very high. Of course, this doesn't work for cases where supply is artificially constrained (like products with IP protection), or if the communist government doesn't allow competing companies to start.
which is fine, because if hiring someone would dilute their profits, it means the new hire is decreasing the efficiency of the organization. Normally, you would hire if you find that the existing employees cannot complete all of the work required, as there's too much - aka, leaving business/profits on the table due to lack of room.