Aw Lawd!!! Don't be fooled by high NOMINAL profits. They're high SOLELY because of the FED inflating the currency for 100 years straight.Nominal wages have risen, too, but this is often hidden by expressing them in percentages, and "adjusted for inflation". If they done these "modifications" to business profits, you would get a totally different conclusion, but that don't help the gov't trick you into demonizing rich people. Nominal amounts of money will continue to grow higher, regardless of wealth generation or wealth destruction.
Don't be fooled by inflation!!!
Economic activity slumps simply because there is less REAL savings, therefore less REAL profit to be had. This pushed those businesses that operate on the margin out of the market and into bankruptcy... and, of course, the customers either go without, or they aquire their goods from the businesses that are still up and running. You must understand that the boom in the 90's wasn't increased prosperity. It was mass consumption of previously saved wealth. We raided our pantry throwing a party, and now the party is over, and it's rent week.
.... and what the other poster said. read "human action", or at the very least, Hazlitt's "economics in one lesson".
"I do not add 'within the limits of the law,' because law is often but the tyrant's will, and always so when it violates the right of an individual."
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