Rate of Profit Naturally Low in Rich Countries… and not at Apple

By Thomas Macauley on

“…the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin.”
– Adam Smith writing of the value of profits, rent, and wages to a society’s wealth.

People are right to have concern about high corporate profits and stored up cash… but certainly confiscating corporate cash will only encourage more caution and fear and discourage any growth or trickle-dust.

And by the way, the “corporate profits higher than ever” we hear about nowadays are corporate profit percentage of GDP, which is hardly a useful ratio.
And today the biggest profit maker, Apple, is awarded another $1B and non-competition from Samsung? Because Apple was damaged? Something wrong here.

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *