Saturday, March 30, 2013

Profit Is Good

Many Socialists, including Obama and his PEEP's, are often critical of companies that make profit, as though somehow profit is evil.   The reality is that without profit there is no money for investment to create economic growth and job creation.   And, we need to help these economic dummies understand that we are talking about Pre-Tax Profit anyway.  If a company earns 8 - 12% in profit in the US, which is not always the case, that money will be taxed by federal and state governments so in the end it may be that real profit is only 5 - 8% after government confiscation. 

This is the money companies have to pay dividends to their stock holder owners and to make new investments to expand.   It is not about the top line in revenues; but rather about what a business owner gets to keep.  Socialists and Obama's PEEP's, feeding at the trough, living off the fat of our land, do not understand the notion of risk because many of them like the President have never owned, or run a business.  When companies, or business owners make an investment, they do so with the hope of earning a Return On Investment for their money; otherwise, why bother.  

Socialists continue to call for higher and higher taxes and more regulations.  The end result is less and less investment in the US.  Why would any business owner risk money and work harder if he or she gets to keep less and less of the profit, if any, that is generated.   And, with increasing regulations and job killers like ObamaCare, it becomes harder to earn a profit.   So again, why bother to make investments; hence the reason we see slow growth and high unemployment in the US and other countries that implement Socialist Schemes.    

I believe there is an Economics for Dummies book that is highly recommended for all Socialists, including the President of the United States.   Profits, made legally, are absolutely necessary to economic growth and job creation.   Socialists, like Obama and his PEEP's and Pals in Congress need a better understanding of Free Market Capitalism, that's for sure.   Further, if you kill the goose that lays the golden eggs, as they are doing, there are no more eggs for them to feast on.  Something for Socialists to think about. 

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