White House press secretary Karine Jean-Pierre recently reiterated a point the Biden White House has been making for the past year: that inflation remains high not because of the Biden $6 trillion spending spree but because “high profit margins” captured during the COVID-19 pandemic drive up consumer prices.
We then were told that the White House’s grand strategy to bring down sticker prices further at the store is to lower business profit margins for everything from drugs and computers to food and gasoline.
How low should those evil profits go? To zero?
Wait, since when are profits evil? The ability of a company to turn a profit is the very engine of growth — also of innovation, job creation and entrepreneurship.
The only people who could possibly believe profits are nefarious are those who have never actually earned a profit. It isn’t so easy.
As the late, great economist Walter Williams of George Mason University used to explain in his Econ 100 course: Farmers in North Dakota don’t raise cattle and work 14 hours a day growing acres of wheat because they want to provide a juicy steak meal for a Wall Street fat cat. Those farmers and ranchers don’t give a hoot for New Yorkers. They raise cattle and send steaks to feed the people in Manhattan because they want to earn a profit. If there were no profit in it, the people in New York would go hungry or would be standing in soup lines.
Almost every lifesaving drug known to man was developed in the lab of a private pharmaceutical company or a biotech firm. Governments rarely invent new lifesaving drugs used by millions of people. And no, former Vice President Al Gore didn’t invent the internet. Profit seekers did, and then they built a $10 trillion industry that has revolutionized the way we live and work and play.
Steve Jobs and his colleagues virtually invented the personal computer and Apple’s relentless pursuit of profit. He perfected the cellphone and then drove down its cost so that today even many of the poorest people in Africa can afford it. Fifty years ago, even a king’s ransom couldn’t buy what a poor Indonesian farmer has in his pocket. Why? Because Apple found a way to make a profit selling it to him. Now Apple is a $3 trillion company — by selling people all over the world something they desperately want.
That’s not to say altruism and charity don’t count. It surely does — and it’s a divine inspiration. But we have hundreds of years of evidence that this isn’t as powerful a motivation as the mundane and relentless pursuit of making a profit. Even Bono of U2, a great philanthropist, has discovered with the tens of millions of dollars he has donated to worthy causes that charity is never going to solve the poverty problem. Only the free enterprise system and profits will.
The profit motive is arguably the noblest pursuit in human history. Profits have saved more lives, created higher living standards, sparked more inventions, pulled more people out of poverty and created more jobs than all the government programs and all the “nonprofit” activities combined.
A war against profits is a war against prosperity. As economist Larry Kudlow of Fox Business puts it: High-profit margins are the mother’s milk of the stock market, so lower profits (or even zero profits, which seems to be the Biden goal) would lead to a flurry of business bankruptcies, mass layoffs and a stock market collapse. Without profits, there are no businesses, and without employers, there are no jobs, and without jobs, there is no consumer spending.
And you can kiss your 401(k) plan goodbye in a land of shrinking profits.
So why are the Biden people against profits? Why don’t they get the way the world really works? Perhaps it is because, as we revealed in our Committee to Unleash Prosperity study last year, most of the Biden administration appointees have never worked for a private business. They don’t understand one of the most basic economic truisms: What drives down an economy aren’t businesses that make a profit but businesses that make a loss.
If the goal of the Biden administration is to drive down profits, the endgame will be to make everyone poorer and poorer over time. We will have reached their goal of equity and equality.
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Stephen Moore is a senior fellow at the Heritage Foundation and a co-founder of the Committee to Unleash Prosperity. His latest book is “Govzilla: How the Relentless Growth of Government Is Devouring Our Economy.”
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The lies, cons, deceptions, hypocrisy, and treachery of this treasonous, woke, socialist Democrat Party cult and their supporters know no bounds.
To this dishonorable Democrat Party and their supporters, Gender, Truth, Facts, Reality and History are all irrelevant, if the Democrats do not WANT to believe them or they disagree with them. Democrats will just make up their own, Gender, Truth, Facts, Reality and History to fit what they WANT to believe or fits into the Con or Deception that they are running at the time.
To fully advance the Lying, Treasonous, Demonic, Woke, Socialist Democrat Party’s destructive beliefs and agendas is to divide our citizens with hate and promote – racism, open borders, radical feminism, abortion-on-demand, the LGBTQ lifestyle, unfettered sexual identity, transgender, same sex marriage, child indoctrination into sexual confusion and perversions, the pagan Liberal left Democrats must do away with GOD, our Constitution, common sense, morality, Christian values and free religious exercise altogether.
Under the of Disguise of Democrats versions of “anti-discrimination.”
John Adams, said:
“Property is surely a right of mankind as real as liberty.…The moment that the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. Property must be sacred or liberty cannot exist. ”
“Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other “
The secular Democrat party Marxists understand this concept which is why they must first drive the concept of God from our minds, hearts schools and government before their demonic control can conquer and come in. Like their mentor Saul ALinsky they first pay homage to “the first radical known to man who rebelled against the establishment and did it so effectively that he at least won his own kingdom – Lucifer”
THe left has ALWAYS hated those who are successful. UNLESS ITS THEM!
“Biden Declares War On Profits” ? more like Biden Crime family fails to declare their profits made off Wars,,like in Ukraine and Afghanistan with their 10% kickbacks from weapons given away in the billions just a small piece of the bigger picture. Joe and the Democrats do NOTHING to scratch another’s back until theirs gets scratched first, usually preceded by the expected availability of young girls getting hair sniffed by the big guy, and the smartest guy Biden son getting much much more than his back scratched. Those Democrat voters who still believe themselves and Joe to be Christian need to re-read 2Peter2; 3-22 Ending with;
19 While they promise them liberty, they themselves are the servants of corruption: for of whom a man is overcome, of the same is he brought in bondage.
20 For if after they have escaped the pollutions of the world through the knowledge of the Lord and Saviour Jesus Christ, they are again entangled therein, and overcome, the latter end is worse with them than the beginning.
21 For it had been better for them not to have known the way of righteousness, than, after they have known it, to turn from the holy commandment delivered unto them.
22 But it is happened unto them according to the true proverb, The dog is turned to his own vomit again; and the sow that was washed to her wallowing in the mire.”
Not money, nor profits but their love of it over all else, is the root of all their evils. This will not end well for Joe.