Historically, yup. The Wall Street Journal wrote a pretty good article. When inflation happens, profit margins increase.
And please. We both know the Democrats had nothing to do with the current inflation. Inflation is happening world wide due to the pandemic, it’s not just a US problem.
Reagan was an Old timey globalist conservative?
How does what you say counter the prospective that maximizing profits is the main goal. The quicker the better.
No one is truly worth that much money. If that CEO made 1/2 that, that would be 1 million a month.
Who the hell can’t live epically large on 1 million a month?
We need to go back to some sort of salary cap, like we basically had from the 1940’s, until Regan blew it up.
Indeed!
Republicans keep coming up with good plans to do something, and the Democrats keep shooting them down. Damn Dems.
I don’t know if I would go that far. But we do need something addressing income disparities. CEOs get obscene increases in pay, while their workers get pennies.
I don’t think a salary cap would work anyway… they’d work around it via stocks or something. I think the only way would be via a tax on wealth vs income. In fact, I wonder if we taxed wealth we could afford to get rid of business taxes.
The greed should be addressed. Wages are a business expense and are deductible from taxes as a result. Corporations get the laws changed so that they pay less in taxes and refuse to pay higher wages, even though they would be tax deductible. Figure out the logic there.
Can I deduct my employees’ salaries as a business expense?
Yes. If you run your own business, you may be able to claim a 100% tax deduction for the salaries, wages, commissions, and bonuses paid to your employees during the year. Employers are generally able to deduct employee pay as a business expense if the pay meets the following requirements:
It is an ordinary and necessary expense.
It is paid or incurred during the tax year.
It is reasonable as defined by the IRS.
It is given in exchange for services performed for your business.
Any employee pay you deduct as a business expense must be recorded as income on an employee’s W-2 form, including cash tips, bonuses, commissions, or other form of compensation.
Because there are short term, expedient, methods of maximizing profits for a short time, like a quarter or even several. But those expedients are often not sustainable and then profits fall. So a business has to look at more than how much profit it can make in the short term. But you have insisted time and time again that the duration over which the maximization of profits occurs is irrelevant. And that is just wrong.
It is irrelevant.
If I give you 1 million and you can pay me back, plus interest, in 1 year vs 5 years. I take that deal all day long.
Then I can decide if I want to continue to invest more… or allow my current investment to grow.
If that 1 year profit was risky, I might take my money and walk.
I understand. Business isn’t my strong point either.
Higher tax rates, was essentially a salary cap.Of course the rich can find ways to cheat, or hide some of their money…but, it could effect the huge wealth gap…as they would ether pay more then they do now.
You speak for yourself.
No idiot would say “no I don’t want my profits as soon as possible… please take your time” 
More money put back into the business which meant.expansion and more jobs. Now they pocket it and squeeze the existing workers making them do multiple jobs while paying them for one and get rid of the more expensive labor via attrition instead. Good times.
Things like that don’t move rapidly.
You’d think this would be a wake up call though. But I don’t know how many wake up calls we need as a nation to figure it out finally.
When the pandemic first started, supplies of PPE were in short supply. China (where much of it is manufactured) is the main supplier, and was commandeering the majority of supply for their own country. On a small scale, it was a national security issue, but more importantly it was a wake up call.
Much of the rare earth materials are in the hands of Russia and China. Do we wait until it’s a national security issue before we do something about that?
Chip manufacturing is impacting the auto industry, high tech industry, cell phone industry.
Supply chain for anything and everything sitting on barges in the Pacific should be a wake up call.
On a different front, shortly after the USA signed off on a pipeline from Russia to eastern Europe, Russia increased its saber-rattling on Ukraine. Now Russia can weaponize the fuel supply and hold Europe hostage in this latest global crisis. The administration has pinched down our own production and put Europe at greater risk.
We should be doing everything we can as a nation to encourage domestic production – of everything – and discourage imports. We’re not though. I guess we need a bigger wake up call.
Make it $15/hr. Or $20.
But why do it? It would happen if we refused imports that are manufactured under practices that are highly polluting, as one reason. We’re all about forcing higher manufacturing costs domestically to reduce pollution and greenhouse gasses. Let’s make it worth their while for domestic manufacturers to comply with that.
This is interesting because the net effect of doing something like this is costs will skyrocket. We have conservatives screaming about inflation and high prices… while at the same time screaming that we shouldn’t be giving a dime to foreign companies or US companies who outsource.
The problem we have reconciled with is… will the average American accept 25% hike in prices… just so they don’t have to buy from China?
My answer is hell no. My evidence… just look at all the complaints regarding price increases.
Thus, our own regulations on domestic business encourages outsourcing.
If you don’t want that, then maybe you should prefer a relaxation of regulations.
Which regulations encourage outsourcing?
I think US consumers demand outsourcing. We like low prices.
I’d rather not reduce our regulations. I like having clean water and clean air.
As for price increases. Even if we reduced our regulations, hard to imagine prices not skyrocketing when labor costs are all of a sudden 800% higher than they used to be.
