The Progressive Problem of Profit Making

Apple reported a huge net profit in its fiscal first quarter, topping the nearly $16 billion made by ExxonMobil in the second quarter of 2012. Record sales of iPhones were behind the surge in profits.

NBC’s Brian Williams put it this way: “The richest company in the world is Apple to the tune of the most profitable quarter of any company ever — a new record — $18 billion in profits in one quarter. Cash on hand, including investments, $178 billion. No other company even comes close.”

But then he added, “It’s enough money to give every American $556, though they have no plans to do so. Their business model, you see, only works the other way around.”

Evidently, Williams believes a company which makes a profit should give that money away to people who did nothing to earn it. This isn’t the first time he’s tried to ‘take-down’ the tech giant or the U.S. Constitution.

In December 2012, he sat down with Apple CEO Tim Cook, where Williams wondered why the company couldn’t be a “made-in-America company.” He went so far as outlining a political scenario where President Obama was all-powerful.

“Let’s say our Constitution was a little different and Barack Obama called you in tomorrow and said, ‘Get everybody out of China and do whatever you have to do, make these, make everything you make in the United States.’ What would that do to the price of this device?” Williams asked.

Cook changed the argument.

“Honestly, it’s not so much about price it’s about the skills, et cetera,” Cook responded. “Over time, there are skills that are associated with manufacturing that have left the U.S. Not necessarily people, but the education system stopped producing them.”

Two years of free college ought to fix this. Not!


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