Such a simple concept and yet so few people who 'claim' to look for employment understand it! Paraphrasing Peter Drucker, only Investors and Customers decide how much a company can make...not unions, employees, government, angels or any other 'group' the media invites onto your TV Screen to imply otherwise! Years of schooling won't help in understanding that unfortunately, so Academe is clueless as the media on this issue!
You forgot the largest force of all - Competition. A free market is the biggest limiter on profit, there is always someone who is willing to take a piece of what you have for just a little less...
( Most of my job is quoting, times get tough we quote to pay wages and lights until things pick up, its a dog eat dog world out there in the tool and die industry right now.)