All posts by Wintery Knight

https://winteryknight.com/

How much does the average American corporation make in profit?

How much profit does the average American corporation make?
How much profit does the average American corporation make?

A while back, there was a story about how Americans vastly overestimate how many people in the USA are homosexual. According to Gallup polls in 2011, Americans estimated that 25% of the people in America were homosexual. In 2015, it was 23%. The actual number is about 3%. So it’s very clear that Americans can have wildly inaccurate perceptions about reality. Why are Americans so wrong? I think it’s because they see a lot of gay people in high profile areas, particularly in the entertainment industry.

I thought about this failure to perceive reality when I saw a story about how much profit Americans think that corporations make. My guess was that the average corporation makes about 5-10% profit margin. I know this because I used to buy and sell stocks regularly and that’s one of the numbers I would look at. Most Americans own stocks, so I thought they most Americans would know the number as well. But it turns out that American perceptions of corporate profits are wildly off the mark.

Check out this article from the prestigious American Enterprise Institute:

When a random sample of American adults were asked the question “Just a rough guess, what percent profit on each dollar of sales do you think the average company makes after taxes?” for the Reason-Rupe poll in May 2013, the average response was 36%! That response was very close to historical results from the polling organization ORC International polls for a slightly different, but related question: What percent profit on each dollar of sales do you think the average manufacturer makes after taxes? Responses to that question in 9 different polls between 1971 and 1987 ranged from 28% to 37% and averaged 31.6%.

How do the public’s estimates of corporate profit margins compare to reality? Not surprisingly they are off by a huge margin. According to this NYU Stern database for more than 7,000 US companies (updated in January 2018) in many different industries, the average profit margin is 7.9% for all companies and 6.9% for more than 6,000 companies excluding financials (see chart above).

[…]“Big Oil” companies make a lot of profits, right? Well, that industry (Integrated Oil/Gas) had a below-average profit margin of 5.6% in the most recent period analyzed, and separately, the Production and Exploration Oil/Gas industry is losing money, reflected in a -6.6% profit margin. For the general retail sector, the average profit margin is only 2.3% and for the grocery and food retail industry, it’s even lower at only 1.6%. And evil Walmart only made a 2.1% profit margin in 2017 (first three quarters) which is less than the industry average for general retail, possibly because grocery sales now make up more than half of Walmart’s revenue and profit margins are lower on food than general retail.

Sometimes, the government makes MORE from the sale of goods or services than the company that does ALL the work:

Interestingly, Walmart’s profit margin of 2.1% is actually less than one-third of the 6.5% the average state/local government takes of each dollar of Walmart’s retail sales for sales taxes. Think about it – for every $100 in sales for Walmart, the state/local governments get an average of $6.50 in sales taxes (and as much as $10.12 in Louisiana and $9.45 in Tennessee, see data here), while Walmart gets only $2.10 in after-tax profits!

I think that Americans are getting their false anti-corporation views from listening to the mainstream media. The mainstream media is overwhelmingly leftist according to recent studies of their political donations. I think that the anti-corporate views of the average American comes from their uncritical consumption of mainstream media propaganda. They think they are getting objective news reporting, but what they’re really getting is socialist propaganda.

Here is a short little video that explains more about profit margins, and what would happen if a socialist like Bernie Sanders were put in charge of a corporation:

If you’d like to help with this problem of anti-business economic illiteracy, please watch the video and share it, or share the AEI article, which contains the video. America will be a better country when Americans have accurate, informed beliefs about important issues.

New study: what lifestyle allows women to be happiest and most fulfilled?

Marriage and family
Marriage and family

In preparation for this blog post, I read an article from a far-left source about the decline of women’s happiness.

Excerpt:

As women gain political, economic and social freedoms, one would expect that they should feel even more contented relative to men. But this isn’t so.

The “paradox of declining female happiness” was pointed out by economists Betsey Stevenson and Justin Wolfers, who also happen to share a house and kids. They analyzed the happiness trends of US citizens between 1970 and 2005 and found a surprising result.

Stevenson and Wolfers discovered that American women rated their overall life satisfaction higher than men in the 1970s. Thereafter, women’s happiness scores decreased while men’s scores stayed roughly stable. By the 1990s, women were less happy than men. This relative unhappiness softened after the turn of the century, but men continue to enjoy a higher sense of subjective wellbeing that is at least as high — if not higher — than women’s.

Those 35 years saw advances in American women’s rights and financial power.

Let’s take a look at a recent study that the Daily Wire reported on, to see what really makes women happy:

Despite the onslaught of propaganda telling young girls otherwise, a recent research paper distilling data from over 30 European countries concluded that mothers find homemaking preferable to working full-time.

Doc. PhDr. Dana Hamplová, Ph.D., a senior scientist at the Institute of Sociology, ASCR, and a current representative of the Czech Republic in the International Social Science Program, authored the paper. Addressing Betty Friedan’s narrative in the book The Feminine Mystique, which claims that women are happiest and most fulfilled at work, Hamplová “explores the link between employment and subjective well-being among mothers with children under 3 years of age,” reads the paper’s abstract.

“Analyzing multiple measures of subjective well-being, the paper shows that homemakers are generally happier than full-time workers,” the scientist found.

“Contrary to our expectations, homemaking was positively associated with happiness particularly among mothers who left higher quality employment for childcare. Though some variation across countries exists, it is not linked to the provision of formal childcare, duration of parental leave, or tax system,” Hamplová explains.

[…]”Thus, similarly to several other studies, the ESS [European Social Survey] data do not corroborate Betty Friedan’s idea that domesticity and housekeeping leaves women unhappy and unsatisfied,” she writes. “As all 12 measures of happiness/satisfaction point to the same direction, the conclusion that mothers with younger children tend to be better off if they are not engaged in paid employment seems to be robust.”

We’ve had lots of advancements in women’s power, often coming at the expense of men (i.e. – husband candidates). For example, anti-male schools staffed by feminist administrators and feminist teachers might be great for women, but they don’t produce high-earning men for women to marry. And when women vote to expand government, taxes must increase to pay for all the spending. This reduces even further the pool of men who can take on a wife and family shrinks even more because of the increased tax burden.

This article from the leftist The Atlantic explains:

In the view that has prevailed in American education over the past decade, boys are resented, both as the unfairly privileged sex and as obstacles on the path to gender justice for girls. This perspective is promoted in schools of education, and many a teacher now feels that girls need and deserve special indemnifying consideration.

[…]A review of the facts shows boys, not girls, on the weak side of an education gender gap. The typical boy is a year and a half behind the typical girl in reading and writing; he is less committed to school and less likely to go to college. In 1997 college full-time enrollments were 45 percent male and 55 percent female. The Department of Education predicts that the proportion of boys in college classes will continue to shrink.

Data from the U.S. Department of Education and from several recent university studies show that far from being shy and demoralized, today’s girls outshine boys. They get better grades. They have higher educational aspirations. They follow more-rigorous academic programs and participate in advanced-placement classes at higher rates. According to the National Center for Education Statistics, slightly more girls than boys enroll in high-level math and science courses. Girls, allegedly timorous and lacking in confidence, now outnumber boys in student government, in honor societies, on school newspapers, and in debating clubs. Only in sports are boys ahead, and women’s groups are targeting the sports gap with a vengeance. Girls read more books. They outperform boys on tests for artistic and musical ability. More girls than boys study abroad. More join the Peace Corps. At the same time, more boys than girls are suspended from school. More are held back and more drop out. Boys are three times as likely to receive a diagnosis of attention-deficit hyperactivity disorder. More boys than girls are involved in crime, alcohol, and drugs. Girls attempt suicide more often than boys, but it is boys who more often succeed. In 1997, a typical year, 4,483 young people aged five to twenty-four committed suicide: 701 females and 3,782 males.

It’s important to note that women are not victims here, they are actually the ones who created the shortage of men who could earn enough money to support a family, and allow them to stay home with their children. Their “advancements in power” came at a cost: they undermined the system that produced men who were capable of handling the financial demands of a family where the wife can raise her own children.

Look at this study of how women have voted to expand government and therefore raise taxes on working men for social programs that replace husbands:

This paper examines the growth of government during this century as a result of giving women the right to vote. Using cross‐sectional time‐series data for 1870–1940, we examine state government expenditures and revenue as well as voting by U.S. House and Senate state delegations and the passage of a wide range of different state laws. Suffrage coincided with immediate increases in state government expenditures and revenue and more liberal voting patterns for federal representatives, and these effects continued growing over time as more women took advantage of the franchise. Contrary to many recent suggestions, the gender gap is not something that has arisen since the 1970s, and it helps explain why American government started growing when it did.

Bigger government means higher taxes means men earn less money, after taxes. How are you supposed to keep your wife home to watch over the little ones when taxes are higher? You can’t.

Democrats oppose release of #FISAMemo detailing surveillance abuses #ReleaseTheMemo

The Memo "raises serious questions about... the Obama DOJ"
The memo “raises serious questions about… the Obama DOJ and Comey FBI”

OK, I’m not following this story too closely, but I think what I’m hearing is that the Clinton campaign funded a company called Fusion GPS, which produced a Trump-Russia dossier. And this dossier was then used to get surveillance warrants on Trump campaign staff, in order to help Hillary Clinton win the election. And apparently, there’s a memo that documents exactly how this was done, and the Republicans are trying to release it to the public, while the Democrats are trying to cover it up.

The Daily Caller talks about what’s IN the memo:

National security journalist and Fox News contributor Sara Carter reportedThursday that the memo shows “extensive Foreign Intelligence Surveillance Act abuse.”

The memo also contains information about the Department of Justice (DOJ) and Federal Bureau of Investigation (FBI), as well as the infamous Trump-Russia dossier.

Carter also writes that sources told her “they would not be surprised if it leads to the end of Robert Mueller’s Special Counsel investigation into President Trump and his associates.”

She also reports that an unnamed congressional member told her “(w)e probably will get this stuff released by the end of the month.”

The article has some tweets by Congressmen Louie Gohmert, Ron DeSantis, etc.

And more:

A number of other Republican lawmakers sounded off about the contents of the classified intelligence memo.

Pennsylvania Rep. Scott Perry told Fox News, “You think about, ‘is this happening in America or is this the KGB?’ That’s how alarming it is.”

Florida Rep. Matt Gaetz said, “I believe the consequence of its release will be major changes in people currently working at the FBI and the Department of Justice.”

Gaetz also issued a statement on his congressional website Thursday calling for the document to be released to the public, writing, “The House must immediately make public the memo prepared by the Intelligence Committee regarding the FBI and the Department of Justice. The facts contained in this memo are jaw-dropping and demand full transparency. There is no higher priority than the release of this information to preserve our democracy.”

How bad are the contents of the memo?

Here’s the latest from Fox News:

A four-page memo circulating in Congress that reveals alleged United States government surveillance abuses is being described by lawmakers as “shocking,” “troubling” and “alarming,” with one congressman likening the details to KGB activity in Russia.

Speaking with Fox News, the lawmakers said they could not yet discuss the contents of the memo they reviewed on Thursday after it was released to members by the House Intelligence Committee. But they say the memo should be immediately made public.

“It is so alarming the American people have to see this,” Ohio Rep. Jim Jordan said.

“It’s troubling. It is shocking,” North Carolina Rep. Mark Meadows said. “Part of me wishes that I didn’t read it because I don’t want to believe that those kinds of things could be happening in this country that I call home and love so much.”

Florida Rep. Matt Gaetz said he believed people could lose their jobs after the memo is released.

“I believe the consequence of its release will be major changes in people currently working at the FBI and the Department of Justice,” he said, referencing DOJ officials Rod Rosenstein and Bruce Ohr.

“You think about, ‘is this happening in America or is this the KGB?’ That’s how alarming it is,” Pennsylvania Rep. Scott Perry said.

The House Intelligence Committee on Thursday approved a motion by New York Rep. Pete King to release the memo on abuses of FISA, or the Foreign Intelligence Surveillance Act, to all House members.

[…]The vote Thursday morning on releasing the memo to lawmakers was along party lines, with Democrats voting against making it available for all members.

I probably should get ahead of myself, but I am really hoping that some of the Democrats in the DOJ and FBI end up in the slammer. We have a problem with corruption in the government. It’s a problem that will get immeasurably better if we put some Democrats in jail for the crimes they’ve committed. I’m so anxious to see these secular leftists who thought that they were above the law get justice. Government is not intended to be as a weapon against the advocates of limited government. This is not the Soviet Union.