>>Reducing profits reduces investment, which reduces wage growth... The free market works
Well that sucks because the free market is supposed to drive profits to zero.
Well that sucks because the free market is supposed to drive profits to zero.
https://www.investopedia.com/terms/n/normal_profit.asp
"Economic profit is the profit an entity achieves after accounting for both explicit and implicit costs.
Economic Profit = Revenues - Explicit costs – Implicit costs
Normal profit occurs when economic profit is zero or alternatively when revenues equal explicit and implicit costs.
Total Revenue - Explicit Cost - Implicit Cost = 0
or
Total Revenue = Explicit + Implicit Costs"