Wow. Look at this amazing chart on corporate profits, hot off the press from Laffer Associates.
American companies are spectacularly efficient and profitable. The profits are higher today than anytime in at least 65 years.
And don’t forget the Kudlow rule of investing: profits are the mother’s milk of the stock market.
It’s the reason that our S&P 500 has risen multiple times faster than stock markets in Japan, Germany, France, Britain, Canada and even China.
This is the real story of the American economic miracle over the last half century.
Free trade, low tax rates, high-skilled immigration, deregulation, and incredibly efficient capital markets (think Warren Buffett) direct trillions of dollars of investment dollars to companies that provide the highest returns (think Google, Apple, FedEx and Walmart).
So the dodo birds in the Democratic Party look at this and they say: tax ’em more and more socialism. Meanwhile, too many Republicans want government industrial policy. Are they tired of winning?
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