Our economy is based on making a profit, so why

MorkandMindy

Andrew Yang's Forward Party
Supporter
Dec 16, 2006
7,401
785
New Mexico
✟220,487.00
Country
United States
Faith
Marital Status
Single
Politics
US-Others
Our economy is based on making a profit, so why does the country overall make a loss every year?

Yes, there is a difference between which party is in charge, despite the frugal desires of so many Republican voters, the Republican governments lose the nation more money most years (balance of trade as measured by the Current Account Balance (CAB) which is useful measure, unlike GDP which is not).

But the Democratic Party has failed to correct the problem sufficiently, and gave the only candidate on any party who understood the MATH, zero Delegates in the 2020 primary.
 
  • Like
Reactions: ArmenianJohn

iluvatar5150

Well-Known Member
Aug 3, 2012
25,028
23,941
Baltimore
✟551,895.00
Country
United States
Faith
Christian
Marital Status
Married
Politics
US-Democrat
Our economy is based on making a profit, so why does the country overall make a loss every year?
Because government doesn’t serve the same function in the economy as for-profit corporations.
 
Upvote 0

MorkandMindy

Andrew Yang's Forward Party
Supporter
Dec 16, 2006
7,401
785
New Mexico
✟220,487.00
Country
United States
Faith
Marital Status
Single
Politics
US-Others
We could start by selling off under preforming states like Mississippi.

There are a number of different measures, such as state and local debt rather than just state debt, and some variations from year to year, I'm not aware of any where Mississippi is financially doing especially badly.

here is one table on State debt in 2021 with Mississippi doing better than average.

State Debt per Capita.png
 
Upvote 0

MorkandMindy

Andrew Yang's Forward Party
Supporter
Dec 16, 2006
7,401
785
New Mexico
✟220,487.00
Country
United States
Faith
Marital Status
Single
Politics
US-Others
Because government doesn’t serve the same function in the economy as for-profit corporations.

Because a country is not a company.

I tend to think of the separate accounts for different parts of the economy, one company for example is making a huge profit but the government has to bail out huge losses in another sector.

What often happens is a company finds it can get what it wants made more cheaply in Asia, so closes US manufacturing and buys it in. The US workers lose their jobs and possibly sanity, and the government takes the hit in lost income taxes, medicaid benefits, and sundry forms of financial support.

The one that makes the decision is the company which makes a profit, most like less than the loss the government makes but it is the company that decides. Running a simple capitalist for profit system does not take into account whether the whole system loses but only it's own part of the system.
 
  • Agree
Reactions: hislegacy
Upvote 0

iluvatar5150

Well-Known Member
Aug 3, 2012
25,028
23,941
Baltimore
✟551,895.00
Country
United States
Faith
Christian
Marital Status
Married
Politics
US-Democrat
I tend to think of the separate accounts for different parts of the economy, one company for example is making a huge profit but the government has to bail out huge losses in another sector.

One financial organization lends a large amount of money to a third world government it forced to take the loan, at a huge interest rate, and when it is obvious the country can't pay then the financial organization arranges for the US government to forgive the loan and pay it. Big payouts to the top people in the financial organization and Joe public pays, or his children.

What are you talking about?

Companies run surpluses so that they can distribute those profits to shareholders. The government doesn't have shareholders - it's supposed to do stuff with the money it takes in. If it's running surpluses, then it's either taking in too much money or it's not doing enough stuff.

Charities aren't supposed to run big surpluses, either. If they are, it means they're not using their donations for their intended purposes.
 
Upvote 0

iluvatar5150

Well-Known Member
Aug 3, 2012
25,028
23,941
Baltimore
✟551,895.00
Country
United States
Faith
Christian
Marital Status
Married
Politics
US-Democrat
There are a number of different measures, such as state and local debt rather than just state debt, and some variations from year to year, I'm not aware of any where Mississippi is financially doing especially badly.

here is one table on State debt in 2021 with Mississippi doing better than average.

View attachment 299554

Unsurprisingly, the states with the lowest per capita debt tend to be poorer and have populations worse off than the states with more debt. It's not a perfect 1:1 correlation, but I'd rather live in Massachusetts or most other northeast/mid-atlantic states than anywhere in the deep south.
 
  • Like
Reactions: ArmenianJohn
Upvote 0

Hans Blaster

Rocket surgeon
Mar 11, 2017
14,658
11,694
54
USA
✟294,122.00
Country
United States
Faith
Atheist
Marital Status
Private
What are you talking about?

This seems to be my main take-away from the OP and the follow-on posting.

Large-scale economic concepts are mixed about in a haphazard fashion: total economic activity (GDP) of the nation, state government debt, total corporate profits, etc. while confusing a country for a for-profit enterprise.
 
  • Like
Reactions: iluvatar5150
Upvote 0
This site stays free and accessible to all because of donations from people like you.
Consider making a one-time or monthly donation. We appreciate your support!
- Dan Doughty and Team Christian Forums

mark46

Well-Known Member
Supporter
Jan 29, 2010
20,042
4,720
✟830,815.00
Faith
Catholic
Marital Status
Married
Politics
US-Democrat
Countries and states are not companies. For example, if countries had capital accounts that spread the cost of investments over their life, then countries might be profitable. When we spend $1B on a bridge, it is a current expense, which makes no sense for a company.

That being said, states must balance their budgets, and we had a surplus under Eisenhower and Clinton. Under Clinton, not only was there a surplus, but there was also a plan to retire the debt within a decades.
And then came September 11th.
 
Upvote 0

Pommer

CoPacEtiC SkEpTic
Sep 13, 2008
16,346
10,240
Earth
✟137,598.00
Country
United States
Faith
Deist
Marital Status
In Relationship
Politics
US-Democrat
Countries and states are not companies. For example, if countries had capital accounts that spread the cost of investments over their life, then countries might be profitable. When we spend $1B on a bridge, it is a current expense, which makes no sense for a company.

That being said, states must balance their budgets, and we had a surplus under Eisenhower and Clinton. Under Clinton, not only was there a surplus, but there was also a plan to retire the debt within a decades.
And then came September 11th.
And “the Bush tax cuts”.
 
Upvote 0

mark46

Well-Known Member
Supporter
Jan 29, 2010
20,042
4,720
✟830,815.00
Faith
Catholic
Marital Status
Married
Politics
US-Democrat
I'm not sure of your point.

Yes, Republicans from Eisenhower supported positions that I disagreed with, then and now. The Republican Party through 2008 was the party that represented and strongly supported the rich and corporations. Big business, the elite and the rich are much more balanced in who they support now. There is a strong argument that Trumpers and their views are much more a danger to big business that Democrats.

My BOTTOM LINE is that lots of the rich, large companies and the elite back the Democratic Party. And yes, many still support the Republican Party. I would not be surprised if more money went to Democrats (and moderate Republicans) in the next year and a half than goes to Trump Republicans.
 
Upvote 0