Scott McLachlan All businesses try to get the maximum amount of profit. Raising the rates long before any costs are incurred is nothing but price gouging. And while Nancy Pelosi may not have read it, definitely the ones who passed it through committee did read it. Furthermore, any member of Congress who voted on this legislation without reading it needs to be kicked out of office.
I have some questions for you Scott. Where do businesses get the money to start a business or expand a business before “costs are incurred” if not from profits? How does a business know it is providing goods or services that consumers want if not by profits? If there are no profits, or worse yet losses, enough consumers say they don’t want it. The higher the profits the more urgently the consumers want it. “Gouging” is not an economic term it is an ignorant emotion laden political term. If it takes a year to build an office building before any rents are received, where does the money come from to pay for the cement, lumber, windows, landscaping, carpets, etc. if not from profits from previous enterprises? If consumers do not determine what is to be produced in what quantities and qualities by buying or abstaining from buying, who does? Without profits how does anyone know the most cost effective way to line a railroad tunnel between using silver or cement? It is true, all businesses try to get the maximum amount of profit, however 4 of 5 business fail within 7 years. Even big business, for example, 86 percent of the Fortune 500 companies in 1959 were either gone or were no longer in the top 500 companies in 2009, according to University of Michigan (Flint) economics professor Mark Perry. For more in depth explanation see: Romancing The Voters Republican Cover.