Posted on 10/24/2009 6:06:36 AM PDT by arthurus
understanding, we shall go over again some of the ground already covered in chapter fifteen on the price system, but we shall view the subject from a different angle.
Profits actually do not bulk large in our total economy. The net income of incorporated business in the fifteen years from 1929 to 1943, to take some illustrative figures, averaged less than percent of the total national income. Corporate profits after taxes in the five years from 1956 to 1960 averaged less than 6 percent of the national income. Corporate profits after taxes in the five years 1971 through 1977 also averaged less than 6 percent of the national income (in spite of the fact that, as a result of insufficient accounting adjustment for inflation, they were probably overstated).10 Yet profits are the form of income toward which there is most hostility. It is significant that while there is a word profiteer to stigmatize those who make allegedly excessive profits, there is no such word as “wageer”—or “losseer.” Yet the profits of the owner of a barbershop may average much less not merely than the salary of a motion picture star or the hired head of a steel corporation, but less even than the average wage for skilled labor.
(Excerpt) Read more at jim.com ...
Yeah, that's really illustrative all right.
Am I supposed to fill in my own number there?
You mean the point of PROFIT is NOT to give to GOVERNMENT?
Why, I thought PROFIT was something GOVERNMENT was to take away from the INDIVIDUAL! After all, GOVERNMENT knows best and don’t we have to “redistribute” the PROFIT VIA GOVERNMENT to make life fair?
Hmmmm, this is Obama’s view of PROFIT.
The idea of profits is very simple. The more profit you make the better off your company is. Companies use profits in different ways depending on their profit margin. If the profits are low, the company will use those profits to reinvest in the company to make it more profitable and look into ways how that can be accomplished. If the profit margin is high, they can afford to offer more benefits to their employees, raise their salaries as well as reinvest a portion of those profits to make the company bigger better and stronger which is especially important these days in the fierce battle of global competition.
“The idea of profits is very simple. The more profit you make the better off your company is. Companies use profits in different ways depending on their profit margin. If the profits are low, the company will use those profits to reinvest in the company to make it more profitable and look into ways how that can be accomplished. If the profit margin is high, they can afford to offer more benefits to their employees, raise their salaries as well as reinvest a portion of those profits to make the company bigger better and stronger which is especially important these days in the fierce battle of global competition.”
I know ... I was just calling attention to Obama’s communism. I’m a CAPITALIST.
What I see now is The Road to Serfdom happening and I am NOT happy about that.
The Road to Serfdom: Fiftieth Anniversary Edition [DELUXE EDITION] (Paperback)
Adam Smith is another favorite.
The Wealth of Nations : Books 1-3 : Complete And Unabridged (Paperback)
~ Adam Smith
There are others but I especially enjoyed these.
I’m sure you are already familiar with them.
It makes me angry beyond words .... to see what is going on.
In a government payer system of health care, there is no incentive to control costs. In a privatized system, the profit motive helps keep costs under control. Anyone who complains about the out of control rising costs of health care needs to know this.
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