Corporate Profits

Discussion in 'Economy' started by Perry2016, Sep 9, 2012.

  1. Perry2016
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    Perry2016 Peryry2016

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    American corporations made a total of $1.6 trillion in profits in the last quarter of 2011 alone. To put this in perspective, those profits could have been used to create enough jobs to effectively end unemployment. I'm not saying they should give all of their profits away, but with so many struggling to find and maintain a good paying job or any at all, these "job creators" need to stop being so greedy and reinvest in the people of this country who buy their goods and services. Without the consumer, the corporation is nothing.
     
  2. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    too stupid!! why hire new people when you can make all you need with the people you have?? That would mean prices would go up, and we'd all pay more. Thats the opposite of what we need in a huge liberal depression like this one. You want to make us all poorer so we buy less and cause more unemployment??
     
  3. The Professor
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    The Professor Diamond Member Gold Supporting Member Supporting Member

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    Dr. Trim Nerenz, Ph.D., Special Guest of the Maclver Institute wrote an article in which he explained how these huge profits are deceptive. He first revealed that these profits were reported by the fortune 500 which represents only .02% of American businesses. This does not mean that the other 98.08% are doing well. Dr. Nerenz adds:

    “And finally, perhaps most importantly, 52% of the profits of the Fortune 500 in 2011 were earned overseas. When overseas profits are removed from corporate earnings reports, 2011 was a quite ordinary year in comparison to the previous 49.

    “Jobs are being added by the Fortune 500; they are being added overseas. Corporate taxes are being reduced abroad, profits are being earned abroad and jobs are being created abroad; taken in their entirely, the facts contained in earnings reports of the Fortune 500 do not refute the supply-side theory of the tax-hawks, they support it.”

    The rest of the article written by Dr. Nerenz can be read at the following link.

    About Those Reports Regarding Record Profits... | MacIver Institute

    Dr. Trim Nerenz, Ph.D., Special Guest of the Maclver Institute wrote an article in which he explained these huge profits are deceptive. He first revealed that these profits were reported by the fortune 500 which represents only .02% of American businesses. This does not mean that the other 98.08% are doing well. Dr. Nerenz adds:

    “And finally, perhaps most importantly, 52% of the profits of the Fortune 500 in 2011 were earned overseas. When overseas profits are removed from corporate earnings reports, 2011 was a quite ordinary year in comparison to the previous 49.

    “Jobs are being added by the Fortune 500; they are being added overseas. Corporate taxes are being reduced abroad, profits are being earned abroad and jobs are being created abroad; taken in their entirely, the facts contained in earnings reports of the Fortune 500 do not refute the supply-side theory of the tax-hawks, they support it.”

    The rest of the article written by Dr. Nerenz can be read at the following link.

    About Those Reports Regarding Record Profits... | MacIver Institute

    The U.S. has created an anti-business environment and far too many people have jumped on the bandwagon. You say “without the consumer the corporation is nothing.” Perhaps you would like to return to an agrarian society and have everyone live off the land the way it was before a few industrialists accumulated enough wealth to open factories creating countless jobs and ending extreme poverty in this country. Yes, without consumers business fail; likewise, without prosperous businesses there are no jobs and no money. I doubt that you will admit - regardless of the amount of supporting evidence - that taxes and government regulations have a detrimental influence on corporate success. It really does appear that U.S owned businesses are doing much better in other countries - business-friendly countries - than they are here.
     
  4. Mr. H.
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    Mr. H. Diamond Member

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    Way to take the wind out of libtard sails.
     
  5. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    One of the reasons I have a 401k and an IRA is so I can share in those corporate profits.
    If you hurt the corporation (via taxes) then you hurt the vast majority of retired and working adults that own stock outright or via a 401k or IRA.
     
  6. Mad Scientist
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    Mad Scientist Feels Good!

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    J.P. Morgan gets about 14 billion a year in Gov't subsidies. Talk about Corporate Welfare!
     
  7. expat_panama
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    expat_panama Gold Member

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    You don't say where you got your $1.6T number, but the president's Bur. of Econ. Analysis data site has corps starting with $15.3T and getting it sliced up like this:
    [​IMG]
    So it's workers that get most of that corporate income, although they first have to pay over $1.4T in taxes before they can feed their families. If you really care about workers, think about how much more money they'd have if they got to keep that $1.4T plus more that corps could pay them if they weren't being hit for $1.5T themselves.

    Also, let me know if you have trouble with the BEA site and I'll show you where they keep their data.
     
  8. Mr. H.
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    Mr. H. Diamond Member

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    I'm curious what that's all about. Subsidies like mailbox money?
     
  9. emptystep
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    emptystep VIP Member

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    I gave a thanks to both perry2016 and The Professor for point and counter-point. I agree with expat_panama that a source would have been useful.

    One important concept to keep in mind is such discussions is the difference between net and gross. Companies can pay CEO's millions and still have no profit, i.e. non-profits, and companies can pay their CEO below industry average and make millions in profits.

    Mr. H did not get a thumbs up because this is a troll comment and adds nothing to anything.
     
  10. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    I like being chopped liver. :D
     

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