In Praise Of Profits

I. Profits, Cash Flow & Capital Spending

Corporate profits are the economy's lifeblood. As Dr. Ed explains in his 2021 book, In Praise of Profits, profits are not merely a reward for economic success; they also drive the economy. Strong profits give businesses both the incentive and the financial means to expand, generating the cash flow needed to invest in capital, hire workers, and pursue new opportunities. At the same time, profits reward successful businesses and encourage entrepreneurs to take risks, innovate, and direct capital toward its most productive uses. Consumers benefit from employment gains and from better goods and services.