I keep seeing comments about how companies are having record profits, and consumers are paying for inflationary prices. Can governments regualte profit margins as a form of consumer protection?
In: 0
If your government makes it too difficult to be extremely profitable for a company, they may decide to generate their profits elsewhere where your government does not have much influence.
Global entities are extremely difficult to police effectively, and they spend a lot of their money lobbying politicians to counteract introduction of laws that would limit their ability to make shareholders rich.
Also note that a lot of shares in fortune 500 companies are held by pension funds, so anything you do to reduce the profitability and growth of these companies, directly impact your own family’s pension growth as well, which unfortunately leads to more and more people being forced to work until they die and/or become dependent on social services.
Economic policy is significantly more complex than just making small focused changes with a specific intent.
Latest Answers