Corporate 3Q Profits Largest in History

jmar wrote:

Or a little fuzzy math?

dcmx326 wrote:

I don't believe it is fuzzy math. I just believe the economy is changing quicker than the American people are willing to adapt to. There are...

I don't believe it is fuzzy math. I just believe the economy is changing quicker than the American people are willing to adapt to.

There are tons of jobs going unfilled due to the lack of workers in the US. The type of work has changed and the location of the jobs has changed. The old boom cities just don't have the jobs anymore so people need to move if they want to have steady work.

I believe that too many Americans are unwilling to adapt to go get the plethora of jobs that are out there.

indy_maico wrote:

How do corporations manage to make record profits when republicans are always saying the corporate tax rates are too high? Funny they want to cut taxes...

How do corporations manage to make record profits when republicans are always saying the corporate tax rates are too high?

Funny they want to cut taxes for corporations and people making over $250 K annually, change the tax code so that the middle class and poor pay more, yet corporations are making record profits, and the rich have gotten richer over the last 20 years while the poor and middle class have struggled to say the least.

indy_maico wrote:

How do corporations manage to make record profits when republicans are always saying the corporate tax rates are too high? Funny they want to cut taxes...

How do corporations manage to make record profits when republicans are always saying the corporate tax rates are too high?

Funny they want to cut taxes for corporations and people making over $250 K annually, change the tax code so that the middle class and poor pay more, yet corporations are making record profits, and the rich have gotten richer over the last 20 years while the poor and middle class have struggled to say the least.

SteveS wrote:

The taxes are taken out of the profits after they are reported. So the tax rate doesn't really affect what they report as the profit. Though...

The taxes are taken out of the profits after they are reported. So the tax rate doesn't really affect what they report as the profit. Though if you increase the tax rate, the company has to generate a higher profit margin to make the same amount of money for themselves.

Thing is, you can downsize your way to a profit, which is what the corporations have done. That's another way of saying the economy ISN'T growing because instead of making capital investment, they are hanging onto the money.

It's also a demonstration of how the government, when faced with declining revenues, could reduce deficit or balance the budget by cutting back on what they spend.

SteveS wrote:

The taxes are taken out of the profits after they are reported. So the tax rate doesn't really affect what they report as the profit. Though...

The taxes are taken out of the profits after they are reported. So the tax rate doesn't really affect what they report as the profit. Though if you increase the tax rate, the company has to generate a higher profit margin to make the same amount of money for themselves.

Thing is, you can downsize your way to a profit, which is what the corporations have done. That's another way of saying the economy ISN'T growing because instead of making capital investment, they are hanging onto the money.

It's also a demonstration of how the government, when faced with declining revenues, could reduce deficit or balance the budget by cutting back on what they spend.

bana0401 wrote:

Thanks for pointing that out, but is it a net, gross, operating, pretax, or some other calculation of profit?

SteveS wrote:

The taxes are taken out of the profits after they are reported. So the tax rate doesn't really affect what they report as the profit. Though...

The taxes are taken out of the profits after they are reported. So the tax rate doesn't really affect what they report as the profit. Though if you increase the tax rate, the company has to generate a higher profit margin to make the same amount of money for themselves.

Thing is, you can downsize your way to a profit, which is what the corporations have done. That's another way of saying the economy ISN'T growing because instead of making capital investment, they are hanging onto the money.

It's also a demonstration of how the government, when faced with declining revenues, could reduce deficit or balance the budget by cutting back on what they spend.

JustMX wrote:

Exactly, If corporations are showing a profit by downsizing and/or selling off assets or inventory that is not a sign that the economy is improving. Back...

Exactly,

If corporations are showing a profit by downsizing and/or selling off assets or inventory that is not a sign that the economy is improving.

Back in the early 80's I lived down near Dalton Georgia, which is known for carpets and textiles.

The amount of plant expansion and construction was unbelievable.

I doubt many of those companies had any profits for several years.

Now many sit empty and instead of manufacturing companies that remain import product and sell it under their brand.

They are probably showing a profit.

Hell, GM is showing a profit and most know that it is a ponzi scheme that is delaying the inevitable.

Wal-mart shows a profit and all they are is a middleman for chinese goods that are bleeding us dry.

Yeah, the economy is improving................for China........and the administrations fix is to print more money to send to china

Nerd wrote:

Here's an economic fact: We have to spend money to get out of a recession like this, and since we don't HAVE any (thanks, in large...

Here's an economic fact: We have to spend money to get out of a recession like this, and since we don't HAVE any (thanks, in large part, to the Republican administrations in the last 30 years), we have to borrow it. The other option is to not spend money and watch the entire economy collapse.

Take your pick.

Nerd wrote:

Profit is net before taxes. That's the definition of "profit". There is "income" which can be net or gross, but "profit" is the amount of money...

Profit is net before taxes. That's the definition of "profit". There is "income" which can be net or gross, but "profit" is the amount of money made after expenses are paid by definition.

Frogman wrote:

Obviously not an accountant: "Net profit" is the same as "net income" = net after taxes. There is not one simple accounting definition of "profit" there...

Obviously not an accountant:

"Net profit" is the same as "net income" = net after taxes.

There is not one simple accounting definition of "profit" there is also, gross profit, operating profit, Profit before tax, whatever "profit" the latest consultant is trying to sell...etc etc...most uses of "profit" can be interchanged with most uses of "income."

What always amuses me about these "record profits" threads is that they are always record DOLLARS. Unless inflation goes backwards...there will always be new records in dollars....even during recessions.

How are corporate profits in relation to revenues?

Nerd wrote:

Here's an economic fact: We have to spend money to get out of a recession like this, and since we don't HAVE any (thanks, in large...

Here's an economic fact: We have to spend money to get out of a recession like this, and since we don't HAVE any (thanks, in large part, to the Republican administrations in the last 30 years), we have to borrow it. The other option is to not spend money and watch the entire economy collapse.

Take your pick.

dcmx326 wrote:

Read this document from the Bureau of Economic Analysis. Maybe it can shed light on your questions. It explains the data behind the article.

http://www.bea.gov/newsreleases/national/gdp/2010/pdf/gdp3q10_2nd.pdf