Amazon’s Results – People Will Still Whine You Know

The standard complaint against contemporary capitalism is that the corporates just pay out all their profits – and more – to shareholders. Leaving nothing to invest and thereby grow the economy. This is, of course, tripe as an analysis for the shareholders then have to make the decision of whether to invest or spend themselves. Rather than the corporate management. Same decision to be made tho’.

Then along comes Amazon. Which doesn’t pay out anything to investors.…

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Grandpa Jez And The TJN Terribly Confused About Amazon’s Tax Payments

Jeremy Corbyn has sent Amazon a 25th birthday card insisting that it should be paying more tax in the UK. He’s also insisting that it should be paying the staff more. Can’t really be both now, can it? If you pay the staff more then there are fewer profits to pay tax upon. The Tax Justice Network gets even more confused on the issue.

Amazon UK paid only £1.7m in corporation tax in 2017, its most recent annual public filing at Companies House, as pre-tax profits tripled to £72m.

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Why Does The Telegraph Say *Despite* Falling Profits?

The aim and purpose of a business is to produce money for the owners, the shareholders, to enjoy. There is no other reason for the existence of the beast. The point of our economic system being that we can and have observed that trusting in that universal, human greed, leads to a richer society.

The proof of this is obvious enough. No socialist country has grown economically to great wealth. All economies which are currently wealthy beyond the dreams of historical experience are and have been for at least some decades roughly capitalist and roughly free market.…

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Why GM Is Laying Off Workers Despite Good Profits – That’s Just What Large Companies Do

GM’s had several quarters of good profits and yet it’s laying off workers – 4,000 white collar jobs. Why? Because this is what large companies do. There’s no mystery here, large companies do reduce their workforces over time, this is just the way the world works. It’s small and growing companies which produce both economic and jobs growth. Thus there’s no mystery here:

GM is laying off another 4,000 workers, the company acknowledged on Monday.

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Why Is Britain Leaving Brexit Money With The EU Instead Of Taking It?

This looks like a remarkably bad bit of negotiation here. It appears that we’re going to just make a gift to the European Union of some billions of pounds. Not even as part of some clever negotiation, nor in return for anything, but just because we’ve not bothered to ask for it. This is not, to put it mildly, sensible.

The underlying question goes to the heart of that whole divorce bill thing. For of course there isn’t a divorce bill.…

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And Now For Today’s Guardian Stupidity

That The Guardian doesn’t gasp matters economic is obvious and well known enough. But it’s difficult to get across to the general public quite how ignorant the people who write the thing are. Here’s an opportunity:

Corporation tax receipts have increased since the financial crisis, although profits of firms have risen as the economy has recovered.

What’s the “although” doing in there? It’s because.


Various bits of the economy are more variable than others over the business cycle.…

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Patisserie Valerie – Yes, It’s Worse, Possibly It Never Made A Profit

Patisserie Valerie announced that there was an oopsie in its accounts back in the autumn, an oopsie which led to the shares being suspended, an emergency capital raising and a hope that all would be well once the matter was properly investigated. That turns out not to have been quite the operative situation. They’ve come back now and said that matters were worse than they thought.

We are not privy to any special or new information here but we can indeed still form a view.…

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Facebook Are Just Rapacious Capitalists – Excellent, How Rich That Makes Us

A claim that Facebook actually isn’t different, that they’re just a bunch of rapacious capitalists out to suck the maximum possible into their own wallets – excellent, how rich that makes us all. For this is the point of the system. People attempt to provide themselves with hot and cold running Ferraris by producing something we value and thus will fork out for. The more value they create for us then the more they get – they get richer precisely because they are making us richer.…

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It’s Drivel Time Again About Apple, The iPhone And Success

It really does help if people understand the basic and underlying arguments before treating us to an analysis of how the world works. This is sadly not true in this latest expose of how Big Bad Apple works and operates to become the world’s Most Profitable Company*. I dunno but maybe this should have been contracted out to someone who knew some economics rather than a PhD student in the history of science?

First there’s the usual misunderstanding of Mariana Mazzucato’s work.…

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The Guardian Doesn’t Really Understand The Concept Of Profit, Does It?

The Guardian’s inability to get this concept of profit is somewhat puzzling. Sure, they’re the standard issue lefties – rather the definition of them – but given that this perfectly describes the manner in which Guardian Media Group itself operates they should be able to get this. Yet, clearly, they don’t.

The background is that people running care homes make a profit. Worse, some of those care homes aren’t very good, yet the people running the not very good care homes make a profit.…

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