The "People's Budget" from Progressive Caucus

#203
#203
hohenfelsvol said:
You have demonstrated nothing. You may think you have and are awfully proud of yourself for your work but in the end, nothing.
Click to expand...

Y'all may have tried to tell me otherwise, but the consumer does not pay for taxes on profits.

Y'all are also assuming corporations are not constantly maximizing profits. In your scenario, they clearly are NOT looking for the monopoly price. A well-run business is clearly charging what they should / can for any given product (as I've been saying from the beginning).

This is so elementary it doesn't bear discussing anymore. You've even given a simplified "cartel" model that proved my point right as rain. (In fact, it was a sales tax model, but I just went with it assuming it as a "cartel" model.)
 
Last edited:
#207
#207
utgibbs said:
Y'all may have tried to tell me otherwise, but the consumer does not pay for taxes on profits.

Y'all are also assuming corporations are not constantly maximizing profits. In your scenario, they clearly are NOT looking for the monopoly price. A well-run business is clearly charging what they should / can for any given product (as I've been saying from the beginning).

This is so elementary it doesn't bear discussing anymore. You've even given a simplified "cartel" model that proved my point right as rain. (In fact, it was a sales tax model, but I just went with it assuming it as a "cartel" model.)
Click to expand...

of course they will charge whatever they can. your assumption is that they CAN charge the monopoly price which is absurd given the current global competition.
 
#209
#209
droski said:
of course they will charge whatever they can. your assumption is that they CAN charge the monopoly price which is absurd given the current global competition.
Click to expand...

No, droski, I said they are searching for the monopoly price.

But you have just supported my premise once again. Thanks! :hi:
 
#213
#213
hohenfelsvol said:
Legend in his own mind.
Click to expand...

uncle_rico.jpg

Posted via VolNation Mobile
 
#214
#214
utgibbs said:
I thought AS was a hoot on SNL. Maybe I should watch his movies. Is Billy Madison the golf one?

That clip was pretty darn funny; I was expecting bombast, but it is better delivered deadpan.
Click to expand...

I don't know, I have never seen it. I have just seen the quote enough to know.
 
#217
#217
droski said:
has there ever been a post by someone who hasn't supported your assertion?
Click to expand...

Yes.

However, in your case, somewhat surprisingly, you always seem to come up with some excellent supporting arguments for my points. You know your stuff.

To wit, your point regarding international competition was further support of my argument.

Well-run companies are already charging as much as they can for the products they sell. That is essentially what I have said all along. They cannot control prices at will, which is what y'all have said (incorrectly) from the beginning.
 
#219
#219
utgibbs said:
Yes.

However, in your case, somewhat surprisingly, you always seem to come up with some excellent supporting arguments for my points. You know your stuff.

To wit, your point regarding international competition was further support of my argument.

Well-run companies are already charging as much as they can for the products they sell. That is essentially what I have said all along. They cannot control prices at will, which is what y'all have said (incorrectly) from the beginning.
Click to expand...

What determines their pricing decisions?

If a particular industry (say electronics) experienced a material drop in the price of their inputs (all else being equal) - would the price level in the industry drop?
 
#220
#220
utgibbs said:
.

Well-run companies are already charging as much as they can for the products they sell. That is essentially what I have said all along. They cannot control prices at will, which is what y'all have said (incorrectly) from the beginning.
Click to expand...

then if taxes go up, yet aren't up worldwide, wont they go out of business?
 
#221
#221
droski said:
then if taxes go up, yet aren't up worldwide, wont they go out of business?
Click to expand...

Droski, ugh. This is why I felt forced to define PROFITS yesterday.

Even if the government suddenly placed 100% tax on all corporate profits NO CORPORATION WOULD HAVE TO GO OUT OF BUSINESS. Shareholders would be PO'ed, but the company could still keep running as they make more money than it takes to run the business.

Now, is that sensible? No. Do we want reinvestment? Yes. So look what happens with the "natural monopolies" of the municipal utilities. Surely I don't have to go over the economic science of those for you?
 
#222
#222
I get it now, gibbs is assuming every company lives in a bubble and does not factor taxes in while deciding how to price their products. With that they will never be affected by taxes because that comes way later after the products are already out the door.

utgibbs said:
Even if the government suddenly placed 100% tax on all corporate profits NO CORPORATION WOULD HAVE TO GO OUT OF BUSINESS. Shareholders would be PO'ed, but the company could still keep running as they make more money than it takes to run the business.
Click to expand...

how can they do 100% tax on profits and still have money left over after expenses?
 
#223
#223
utgibbs said:
Droski, ugh. This is why I felt forced to define PROFITS yesterday.

Even if the government suddenly placed 100% tax on all corporate profits NO CORPORATION WOULD HAVE TO GO OUT OF BUSINESS. Shareholders would be PO'ed, but the company could still keep running as they make more money than it takes to run the business.

Now, is that sensible? No. Do we want reinvestment? Yes. So look what happens with the "natural monopolies" of the municipal utilities. Surely I don't have to go over the economic science of those for you?
Click to expand...

this is ridiculous. please google time value of money. are you seriously arguing that corporations won't shut down if they aren't getting a return on their investment? what about the small business owner? doesn't he need profit to pay for his personal bills?
 
#224
#224
volinbham said:
What determines their pricing decisions?

If a particular industry (say electronics) experienced a material drop in the price of their inputs (all else being equal) - would the price level in the industry drop?
Click to expand...

In two words - supply and demand. Lets just assume supply is steady (although unlikely as price of material inputs has gone down, but let's just set that aside)

If the price of materials went down for an entire product industry, the pressure would be for lower prices all things being equal. HOWEVER:

1. The savings are unlikely to be 1:1 as well-run companies will be aggresively trying to maximize their returns.

2. (And you might have a lot to say about this) It is possible that plowing a portion of that new money into marketing may influence the demand dynamic where the entire regime changes.
 
#225
#225
droski said:
this is ridiculous. please google time value of money. are you seriously arguing that corporations won't shut down if they aren't getting a return on their investment? what about the small business owner? doesn't he need profit to pay for his personal bills?
Click to expand...

The small business owners you are hanging with must have pee-poor accountants! Goodness, even good businesses don't profit in certain quarters! What ever will they do??????!!!!?????? :facepalm:

Regardless, two things:

1. No one is suggesting a 100% rate (although we did fine with 90% for a good long time).

2. Did you just miss my last paragraph in that post?
 
New posts
You must log in or register to reply here.

VN Store



Back
Top