San Francisco – California

 

 

 

 

 

 

Income Inequality

 

 

We all feel some salaries, or bonuses, or whatever compensations are too much.  But have you thought about how to change it?

 

Before considering the announced subject, consider why we want companies to make profits.

 

If we don’t have profit making companies we have the government making all business decisions for government owned businesses.  Yes that is socialism where the government “owns the means of production.  As you know, politicians are familiar with local government overruns on public projects, or the history of socialist countries, you know they do not make good business decisions.  Scandinavian countries are not socialist.

 

The advantage of private ownership is that the owners invest retained profits in new jobs in the directions that serve the market and are profitable.  In addition, private owners are always seeking to expand – which means hiring more people, whereas the government invests net cash flow in social projects such as food stamps or grants to foreign countries.

 

In other words new jobs come from profits.  It is clear that company profits are the  main source of good new jobs.

 

I have come to understand that on the average: each new job requires an investment of $50,000. 

 

The bulk of new productive jobs are created by profits created by the owners of  privately owned companies.

 

What do you think?

 

 





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