Corporate Profits hit a new record high!

Discussion in 'Politics and News' started by Ausm, Nov 30, 2012.

  1. s0me0nesmind1

    s0me0nesmind1 Diamond Member

    Joined:
    Nov 8, 2012
    Messages:
    6,428
    Likes Received:
    104

    Once again, you see "GOVERNMENT ORDERED ROADS BUILT. THEREFORE THEY MAKE DEMAND!"

    You are so fucking flawed it's... incomprehensible where you get such bad knowledge from.

    The demand is SIMPLE. When a road needs repair/expanded - what pushed that to be done? The people DRIVING ON IT you fucking dolt. Why the *** would someone fix a road that isn't being used? They build more roads, because there is something that will profit from it. That road could be out towards a place of expansion for more homes. More outlets. More malls. More stores. People are creating that demand, the government didn't wake up and say "Hmmm, build roads" "But Where?" "I dunno lol!!!"

    People are demanding lower oil prices now - that is in direct relation to demanding more drilling in the US instead of importing it all. But go ahead, keep kidding yourself. Jesus ***, where is the logic these days? What was so commonly known is now rare.

    Not to mention you completely turned around from your initial stance. Go figure :rolleyes:
     
  2. Retro Rob

    Retro Rob Diamond Member

    Joined:
    Apr 22, 2012
    Messages:
    7,692
    Likes Received:
    13
    Judging by the amount of needless insults and "F" bombs in your posts, you probably have a dangerously low vocabulary and even lower reading comprehension skills.

    Try addressing the posts and not the person. Maybe you won't look so stupid.
     
  3. OverVolt

    OverVolt Lifer

    Joined:
    Aug 31, 2002
    Messages:
    14,077
    Likes Received:
    40
    I can't even tell what side of things people are on anymore, but there really aren't sides anyway IMO.

    Government is immune to pricing mechanisms in the market. Sure they "sort of" contract out the work to private companies but the Government doesn't have to worry about taking a loss. If it builds a road to nowhere, so what. They were trying to build that bridge from Alaska to Russia to "stimulate" the economy.

    The rub is that it is a waste of the REAL resources used to create the bridge. The need to build the bridge is to fix a problem that exists only on paper, there was never any demand for that bridge.

    So what all this debt monetization does is lead to a huge misallocation of real wealth. A private company that built a toll bridge to a cliff would go out of business hilariously fast, but the Government is immune so such pricing mechanisms. Instead it "stimulates" the economy, but it doesn't generate any WEALTH.

    So the take away is the more the government spends the more resources we waste on NON wealth producing projects. IE, we have less stuff overall, because we wasted the actual oil/concrete/steel/peoples effort.

    That is not to say that government spending is always bad. In the case of roads like you guys said, they are paid for with everyone's taxes so we can all get around. There is a limit to how big the government can get, and its never been bigger, so I think the answer is obvious as to what is sucking dry all the wealth producing resources and wasting them.

    That same immunity to pricing mechanisms is useful when regulating a power monopoly or making a road into a poor community but we have to be careful to what extent we rely on it. People have really forgotten the basics and things have gone full-retard. We build houses even though we already have enough houses. We subsidize electric cars even though they can't stand on their own in the market. Meanwhile bridges meant to last 50 years are putting in their 73rd year of service etc.
     
    #153 OverVolt, Dec 4, 2012
    Last edited: Dec 4, 2012
  4. buckshot24

    buckshot24 Diamond Member

    Joined:
    Nov 3, 2009
    Messages:
    8,373
    Likes Received:
    52
    We also waste resources on compliance with government regulations and ridiculously complicated tax laws.
     
  5. Matt1970

    Matt1970 Lifer

    Joined:
    Mar 19, 2007
    Messages:
    12,323
    Likes Received:
    0
    Speaking of roads, NY doesn't know what the *** to do with the Obama money it got. They just re-paved the highway through the southern end of Syracuse. They just did the highway 3 years ago and it was still in great shape.

    You will have to excuse Jhhnn. He thinks the Gov creates wealth. He also think the very rich created their wealth because of low taxes and that increasing their taxes will not decrease their wealth potential.
     
  6. Ausm

    Ausm Lifer

    Joined:
    Oct 9, 1999
    Messages:
    25,179
    Likes Received:
    1
    Why would it? More importantly why would you care?
     
  7. Matt1970

    Matt1970 Lifer

    Joined:
    Mar 19, 2007
    Messages:
    12,323
    Likes Received:
    0
    Because you can't claim they got that way because of low taxes and then claim removing those low taxes will have no effect. Do you not see the error in that logic? And why do I care? Because that same logic will be used to raise taxes on everyone once congress figures out it cannot raise enough revenue by taxing the rich alone.
     
    #157 Matt1970, Dec 4, 2012
    Last edited: Dec 4, 2012
  8. Ausm

    Ausm Lifer

    Joined:
    Oct 9, 1999
    Messages:
    25,179
    Likes Received:
    1
    The Bush Tax cuts were irresponsible in the first place and they should all be ended in my opinion.
     
  9. werepossum

    werepossum Elite Member

    Joined:
    Jul 10, 2006
    Messages:
    28,913
    Likes Received:
    268
    Excellent post. This is one reason government stimulus is excellent to stop the bleeding but has little long-term stimulus effect - it's not designed as part of a wealth-creating plan, but is designed to create short-term demand only. As such its effect is inherently limited, or as Roosevelt learned, as soon as the extra money goes away its stimulus effect disappears as well. Even where government spending is well-designed to help create wealth, such as making a river navigable or increasing the traffic per unit time that a road system can carry, its decisions are at least partially for political reasons, so that even the smartest government spending tends to be crippled. Also, no particular group of us, no matter how well-selected, will ever be smarter than all of us.
     
  10. Matt1970

    Matt1970 Lifer

    Joined:
    Mar 19, 2007
    Messages:
    12,323
    Likes Received:
    0
    Thanks for answering the question. [/sarcasm]
     
  11. s0me0nesmind1

    s0me0nesmind1 Diamond Member

    Joined:
    Nov 8, 2012
    Messages:
    6,428
    Likes Received:
    104
    So.... why did Obama extend them again? Twice?

    [​IMG]
     
  12. Matt1970

    Matt1970 Lifer

    Joined:
    Mar 19, 2007
    Messages:
    12,323
    Likes Received:
    0
    We ran him off again.....
     
  13. Jhhnn

    Jhhnn Lifer

    Joined:
    Nov 11, 1999
    Messages:
    36,085
    Likes Received:
    1,481
    Hardly. I have a real day job, one where I don't get to rave online about ebil soshulists all day long.

    So, uhh, the interstate highway system, built during the Eisenhower years, was strictly on the basis of demand? Really? He had to pander to national security interests to get it done, to build for the future that we all enjoy. And he had to hold taxes high to get it done, too.

    So who benefits most from that, anyway? People who rarely travel much of anywhere, or capitalists who use it to make more money? Agribusiness who uses it to bring their crops to market? WalMart, or some urban dweller who doesn't even have a car?

    Who subsidized the internet at its creation, people who had no idea what it would be like, who couldn't create demand in advance, or some far sighted govt bureaucrats?

    Miniaturized electronics? From the space program, both military & civilian. Advances in science & medicine? govt grants. State colleges & universities? same. Pure food, drugs & cosmetics? same. Air traffic control? FAA? FEMA? there's a lot more of the same, things that private industry really can't do very well.

    All of those things provide employment & help maintain demand, even when the sacred free market takes a nosedive.

    Now, of course, now that the wreckage of that deregulated free market headset is all around us, Righties see it as a great opportunity to shrink govt. As if we can cut spending to force layoffs to vanquish unemployment, huh?

    If trickedown economic theory really served us all, how could we possibly have record corporate profits and high persistent unemployment at the same time?

    Maybe somebody or somebodies need to re-evaluate their basic assumptions about how the economy works, huh? Probably not- they'll just try to bend reality to fit into their own preconceived notions, to avoid cognitive dissonance at all costs. Which puts us right back at Colbert's prescient concept of Truthiness- it's true because they believe it to be true- facts, figures, graphs & contrary evidence be damned. It's all about Faith, about faith in the idea that they couldn't possibly be wrong, about anything, ever.

    Wrap your heads around this, if you possibly can- I have my doubts-

    http://www.frumforum.com/were-our-enemies-right/
     
  14. Exterous

    Exterous Lifer

    Joined:
    Jun 20, 2006
    Messages:
    15,224
    Likes Received:
    267
    The WSJ had an article that partially covered this today. Illinois Tool Works Inc is only generating 40% of its revenue in the US, GE 45%, Wabco 3%, Dover 60%, Emerson 59%

    The article was more focused on how the US tax codes was encouraging companies to hold and invest their money overseas but does go to show that a number of large US based companies make a substantial amount of their profit overseas
     
  15. Pr0d1gy

    Pr0d1gy Diamond Member

    Joined:
    Jan 30, 2005
    Messages:
    7,777
    Likes Received:
    0
    Great post. I am shocked that more people who were on the right for most of their lives didn't vote for the other team this time around like I did. It's as if people have joined politics with their religious beliefs and to challenge their view is to question their faith.

    It's a very weird time, especially given the vast amount of resources out there where you can find factual information that proves exactly what you, and the article in your link, are talking about is true. It's almost as if most people just stop learning at a certain point and decide to never research or question their own beliefs or just the world around them in general anymore.
     
  16. OverVolt

    OverVolt Lifer

    Joined:
    Aug 31, 2002
    Messages:
    14,077
    Likes Received:
    40
    ^

    Look at the first comment, lol. The communists were right? Did I read this right? WTF is this crap. The USSR collapsed in the 90's.
     
  17. OverVolt

    OverVolt Lifer

    Joined:
    Aug 31, 2002
    Messages:
    14,077
    Likes Received:
    40
    WTF is this stuff lol. Its ridiculous, what have I walked into here on P&N, lol.
     
  18. Zorkorist

    Zorkorist Diamond Member

    Joined:
    Apr 17, 2007
    Messages:
    6,867
    Likes Received:
    1
    Jhnn, and other communists are on a roll, because Obama won a second term.

    There's no question that they hate everything America stands for.

    -John
     
  19. Matt1970

    Matt1970 Lifer

    Joined:
    Mar 19, 2007
    Messages:
    12,323
    Likes Received:
    0
    Even you can't be this stupid.

    Ya, the communists had it right. They had plenty of time to reflect on it while they were standing in lines waiting for bread.

    This is why you fail.

    What you also fail to understand is everything you listed above was all paid for from taxing capitalism.
     
  20. dmcowen674

    dmcowen674 No Lifer

    Joined:
    Oct 13, 1999
    Messages:
    54,855
    Likes Received:
    14
    China already owns IBM, ever heard of Lenovo?

    That used to be IBM ThinkPad laptops, they gave it to China and just changed the name.

    Boeing is about to do the same thing.

    You next plane will be made in China.
     
  21. Ausm

    Ausm Lifer

    Joined:
    Oct 9, 1999
    Messages:
    25,179
    Likes Received:
    1
    To appease your party to continue the tax cuts for the Middle Class that they desperatly needed in the middle of a Recession. You sound like you suffer from Romnesia.
     
    #171 Ausm, Dec 5, 2012
    Last edited: Dec 5, 2012
  22. Matt1970

    Matt1970 Lifer

    Joined:
    Mar 19, 2007
    Messages:
    12,323
    Likes Received:
    0
    But the were irresponsible right?
     
  23. Exterous

    Exterous Lifer

    Joined:
    Jun 20, 2006
    Messages:
    15,224
    Likes Received:
    267
    Really? China owns IBM?

    :colbert:

    China bought a part of the business that IBM sold off. SOLD. They did not 'give'. China did not buy IBM, they bought a business unit they wanted to sell off. Why did they sell? Because their PC business was losing money. (4 years of losses close to $600m if memory serves) I believe they also got part of the Lenovo company in the deal

    Given Dell and HPs rapidly falling PC sales figures and stock price compared to how well IBM is doing it seems like a smart thing for them to have done

    Good God man - think a little bit before you post
     
    #173 Exterous, Dec 5, 2012
    Last edited: Dec 5, 2012
  24. Jhhnn

    Jhhnn Lifer

    Joined:
    Nov 11, 1999
    Messages:
    36,085
    Likes Received:
    1,481
    Both of you fail utterly & completely at reading comprehension. On the Right Fringe, both breathing & raving are apparently autonomic functions, lucky for you.
     
  25. Ausm

    Ausm Lifer

    Joined:
    Oct 9, 1999
    Messages:
    25,179
    Likes Received:
    1
    You consider spending money you don't have as responsible?