Corporate Profits Hit New Record In 3rd Quarter

[Lurker66]

So you're sayin "If we don't have enough consumers then create more consumers" ?

thats what im saying. Kinda like the diamond industry. Worthless rock used in industry, a simple marketing slogan and BAM, every woman needs a diamond.

Now ya need to increase the workers wages so they can afford to buy that "worthless" rock and you can get wildly rich.

Really every business invests and relies on consumers and the workforce. For a few decades companies havent invested in either and its out of balance. Since workers depend on companies to pay a wage so they can be consumers, it in the best interest of every company to increase wages.

 

[Lurker66]

I'll concede that greed means nothing in economic theory. It doesn't exist as an emotion or a character shortcoming; on the contrary, maximizing profit and efficiency is pretty much the singular end goal. It is the ultimate driver of the perfectly rational human being.

They might have well named Gordon Gekko "Adam Smith."

Egoism vs Altruism i understand, macro vs micro, eh, not so much.

 

[vvvvvvv]

Corporations are not people, they have no RIGHTS, only the privlege to do business with citizens.

So a business or organization that is not formed as a corporation but rather a sole proprietorship, partnership, LLC, LLP, 501(c)(3), etc. should have more rights to choose how the business's money is spent than the ones who chose to organize themselves as corporations?

Benefits used to be offered or paid to full time employees. Companies now avoid doing this due to cost and profit margins.

Quite often, its more cost effective and beneficial for the employee to get an individual plan and the employer to provide a slightly larger salary to cover the cost, especially if the business is small or the employee is young and healthy.

 

[RickN]

The last time they raised the minimum wage was in May of 2007 and many economist said it would hurt the economy and cause higher unemployment. By December of 2007 we were into the worst recession since the great depression. I think they should wait to raise minimum wage until the economy improves a lot.

 

[andrsnsm]

The last time they raised the minimum wage was in May of 2007 and many economist said it would hurt the economy and cause higher unemployment. By December of 2007 we were into the worst recession since the great depression. I think they should wait to raise minimum wage until the economy improves a lot.

I don't believe it was the minimum wage that did that, I believe it was the Democrat control of Congress that came about in Jan 2007 along with all the spending the brought with them. Minimum wage may have played a small part but probably a very small part.

 

[RickN]

I don't believe it was the minimum wage that did that, I believe it was the Democrat control of Congress that came about in Jan 2007 along with all the spending the brought with them. Minimum wage may have played a small part but probably a very small part.

It was not the total cause by any means. The economy was already shaky after 9/11, the start of the housing decline, climbing gas prices, etc all played a part but a lot of economist all told them that it was the wrong time to raise the minimum wage. They did not listen and it made things worse.

 

[Hobbes]

The last time they raised the minimum wage was in May of 2007 and many economist said it would hurt the economy and cause higher unemployment. By December of 2007 we were into the worst recession since the great depression. I think they should wait to raise minimum wage until the economy improves a lot.

Raising the minimum wage only meant more working people had more money to spend to buy things and that didn't cause no recession.

Look at it this way:
If you still had your company with say 5 MW employees and the MW was raised $1 you would be paying $5 more per hour in wages to your employees.
But, there would be millions of consumers with more money to spend to buy whatever it is your company is selling.

If the MW had just kept pace with inflation the last 40yrs it would be $10.55 today, not $7.25.
That's the problem with economy as pointed out in the OP.
There aren't enough consumers making enough money to consume all the GDP capacity we have and therefore no reason for companies to produce more.

Gawd Rick, you are so ideological. But then, you're not still in business any more are you?

 

[DPI]

When you artificially increase the cost of doing business, like the minimum wage or obamacare does, those cost will either drive the cost of the product up for the consumer or will be cut from somewhere in the business, or both.

 

[Hobbes]

When you artificially increase the cost of doing business, like the minimum wage or obamacare does, those cost will either drive the cost of the product up for the consumer or will be cut from somewhere in the business, or both.

If you don't have enough customers with money to spend it doesn't matter does it?

 

[Hobbes]

For decades consumers have depended on borrowing more money to consume the GDP this country produced.
Now, they have hit their credit limit and can't borrow enough to expand the economy in a robust manner.

So, we either have to figure out a way for consumers to either BORROW more money or EARN more money if we want to have enough customers for what our companies are producing.