Business Maximizing Short Term Profits

Discussion in 'Too Hot for Swamp Gas' started by 108, Aug 8, 2013.

  1. 108
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    108 Premium Member

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    Not asking whether it's right or wrong, as business has every right to seek profits first and foremost, but is it not hurting employment numbers and the overall economy?

    -Profits and profit margins at an all-time high
    -Wages as a % of the economy are at an all-time low
    -Fewer Americans are employed at any time in the past 3 decades
    -Labor share of income is an an all-time low
    -Record income inequality

    Less money in the hands of the largest base of consumers (employees), less money back into the economy

    I don't see this changing as a business model, but what the unfettered capitalists don't understand, is that, while it is certainly business's right to maximize profits, they are ultimately at the will of their consumers, which happen to be their employees, which happen to be voters

    And when things get so bad, take a guess where voters are going to look to fix it :yes:

    Ideally, Government should not to have to regulate business, but there is much evidence that business cannot regulate itself to prevent it.


    Corporate profits and profit margins are at an all-time high.
    [​IMG]

    Wages as a % of the economy are at an all-time low.
    [​IMG]

    Fewer Americans are employed at any time in the past 3 decades
    [​IMG]

    Labor share of income is an an all-time low
    [​IMG]
  2. dadx4
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    dadx4 Well-Known Member

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    And your point is?
  3. gatorev12
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    gatorev12 Well-Known Member

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    Well, of course they would.

    Profit is the driving principle behind any business and with long-term profits extremely uncertain due to market instability from a host of factors, businesses will prioritize profits they know they can make now.
  4. 108
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    108 Premium Member

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    good for business, good for shareholders, but it hurts the overall economy/workers, and at some point, the people will look to Gov to solve the problem of record inequality

    there is a choice to do it differently, as seen by Costco
  5. cjgator76
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    cjgator76 Well-Known Member

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    What, in your view, should government do to "fix it"? What specific steps should government take to reduce or eliminate those terrible profits?
  6. 108
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    108 Premium Member

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    Profits aren't terrible, stop trying to speak for me

    And the only thing that comes to me is gradually reversing the upward distribution of wealth that has been going on for the last 3 decades now.

  7. cjgator76
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    cjgator76 Well-Known Member

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    And what specifically should the government do to reverse that trend?
  8. MichiGator2002
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    MichiGator2002 VIP Member

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    Businesses will maximize short term profits, if they are doubtful of the prospect of long term profits. It is uncomplicated enough for an AT&T commercial.
  9. gatorev12
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    gatorev12 Well-Known Member

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    Indeed.
  10. Bushmaster
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    Bushmaster Well-Known Member

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    Profit up as a % of GDP mainly because GDP is down. Simple division.

    Keep government out of it. Can't really think of anything those bozos in DC have fixed. Mostly, they try a one size fits all approach, which really fits no one and the solution is generally bad to begin with.
  11. 108
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    108 Premium Member

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    i am not using the word "should", but they "could" do the opposite of what they did to start it

    the top tax rate, corporate rates, capital gains rates were dramatically brought down, added loopholes to be exploited, and transferred to the backs of the middle class.

    the last 2 major tax breaks given by Reagan and Bush, both brought down the top and bottom rates (more then doubled those not paying income tax), leaving the middle to pay for that bill

    unlike when Kennedy brought it down, he closed enough loopholes to increase tax revenue, and didn't take it from the middle to lower, which are the vast majority of consumers

    the lowering of the top tax rate, has shown not to have any factor on GDP growth, and has just spurred on income inequality

    [​IMG]
  12. MichiGator2002
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    MichiGator2002 VIP Member

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    So bring the prospect of short term profits down to the same crappy outlook as they foresee long term profits? Our economy will be off to the races in no time.
  13. OklahomaGator
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    Get rid of the corporate tax and make taxes on dividends the same as the personal rate.

    I'm not sure how to do it but require at least the amount of profit that would have been paid as a tax to be paid as a dividend to stockholders. This gets the money into the publics hands, not the government to be the stimulus for the economy.
  14. cjgator76
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    cjgator76 Well-Known Member

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    I understand that you disagree with what was done in the past, but we are where we are today. What should the government do now?
  15. Bushmaster
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    Bushmaster Well-Known Member

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    Corporate tax rates have remained unchanged to at least the last 20 years. Qualified dividends have already been taxed at 35% (federal), so that 15% "break" you think you get makes your real rate ~ 47%.

    Only a moron thinks taking money, sending it to Washington for them to skim off a piece to cover overhead, and then having the government spend it, is a more efficient way to putting a dollar into the economy.
  16. gatordowneast
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    gatordowneast Premium Member

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    108, I would suggest you graduate from college, bust your ass for a few years, save some money, then put it at risk to start a business, and then come back and lecture the rest of us on your business philosophies.
  17. vangator1
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    vangator1 Well-Known Member

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    This is due to the global economy. Businesses have been getting rid of jobs through outsourcing for many years now. Businesses have been writing the tax code to create tax incentives for this and buying the politicians to implement them.

    How do you fix it?

    You can't. This economy is going to continue it's decline much the same as Great Britain did. The economy has shifted to China, India and the emerging world. They have 10 times the consumers we do. That's where they are focusing on jobs and the future.

    Obama (and all politicians) are just there to lie to the people to keep them hopeful. That's what drives this economy. Eventually the sheeple will understand. But remember, the govt has been collecting information and stockpiling weapons in anticipation of this. They are not stupid and not without a plan.
  18. QGator2414
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    QGator2414 VIP Member

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    I got in a discussion with a buddy about Costco the other day talking values of those who lead companies. It led to a little research and an interesting find...

    http://finance.yahoo.com/q/pr?s=COST Profile

    http://finance.yahoo.com/q/pr?s=WMT Profile

    Costco's key executives made more than WalMarts key executives last year. Now of course these numbers can change dramatically year to year but/and it is apparent Costcos liberal hero Sinegal is good at using the tax code to pay his 15% rate (assuming the excercised compensation was carried interest/iso's) on most his income like Buffett...
  19. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Killing Obama-scam would be a good start. :grin:
  20. neisgator
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    neisgator Belligerent Gator

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    My Lord. This again.

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