She is the daughter of a Marxist professor, and it shows.
The reason socialists often win the polls is not because socialism is better, but because the message is more popular: “The government will take money from the rich and give it to you,” or “You don’t have to work anymore. capitalists are bad; the government will take care of you.”
Socialists believe that extreme government taxation and transfer programs are necessary to address income inequality.
The capitalist message is less popular. The capitalist candidate says he will tackle racism by ensuring companies hire based on merit, not race, and will tackle income inequality by encouraging people to improve their skills and get better jobs.
Hard work, investment, delayed gratification, and other forms of discipline are incompatible with socialists.
Kamala attacked the company for its high profits.
First of all, the profits that are criticized are mostly nominal, coupled with the policies implemented by Joe and Joe – killing the economy for two years while printing and giving away free money, which causes inflation.
He and other socialists believed that companies should give profits to workers rather than shareholders.
But this raises the question: why would anyone buy shares if they can’t receive profit distribution?
The cost of McDonald’s shares is currently equal to 288 US dollars. People buy these stocks to get a return on their investment. If a company gives profits to workers instead of shareholders, there is no incentive to buy shares or invest in the company anymore.
In addition, there is a legal problem: the company has a legal contract with the worker to pay a certain wage, not the wage plus all the profits.
At the same time, companies have a legal obligation to act in the best interest of their shareholders and to maximize value.
Legally, the profits belong to the shareholders. If the CEO decides to give the profit to someone else, it will be theft.
Another problem with Kamalaite and the socialists is that they focus on gross profit because they want to show huge and scary numbers to prove that the company is evil and greedy.
Gross profit is revenue minus cost of goods sold, but does not include other expenses such as taxes, interest, and operating expenses.
All of these costs must be paid, or the company will be in violation of the law, face lawsuits, and have its assets seized by banks, creditors, contractors, suppliers, service providers, and employees.
After all expenses are paid, what is left is the net profit, which is smaller than the gross profit.
The board of directors then decides how to allocate this net profit, determining how much to reinvest in the company and how much to distribute as dividends to shareholders.
Reinvesting may include opening new locations, expanding existing locations, or purchasing new technology, machinery, or vehicles — investments that help the company earn more in the future.
Whether the company holds this cash or reinvests it, it remains an asset and does not reduce the share price.
However, giving everything away will reduce the company’s assets, have a negative impact on the current stock price, and reduce future profits, because there will be no funds to buy new equipment or expand operations – both are important to achieve economies of scale and reduce. cost per unit.
Typically, the board strikes a balance between reinvestment and distribution to shareholders through dividends or share buybacks.
If the socialists have their way and the board decides to give all the net profits to the employees, the company will not be able to reinvest or expand, which will stop creating jobs. Shareholders will receive nothing, causing the share price to drop.
Without the profit incentive, there will be no future shareholders.
Any loan secured by shares or future profits is risky, possibly leading to default. With no shares to sell, and no cash reserves or retained earnings, the company is going bankrupt.
Claims that Kamala will do better for the deficit and the national debt than Trump ignore the fact that she will give away billions of dollars, destroy the economy, and incentivize more people to live in government.
Proponents argue that these policies have less impact on the deficit because they would be associated with tax burdens, such as unrealized capital gains taxes. This means having to pay taxes every time your home, retirement account, or Bitcoin increases in value on paper, whether you have cash or not.
Forcing companies to distribute all of their net profits as compensation to employees would reduce the government’s tax revenue to zero.
If the distribution is classified as compensation, it will be considered as a cost, reducing the company’s net profit to zero, regardless of when it has been calculated.
This means that distributions will be deducted from revenue as an operating expense, effectively reducing taxable income to zero. Consequently, no profits are left for taxation, and the company will not owe corporate income tax.
All of Kamala’s Marxist policies will incentivize government dependency while stifling investment, crippling the economy, and reducing job creation. But the message of taking from the company “bad, greedy” and giving to people “good, hard-working” is easier to sell.
