Letters: Subsidies and profits

Published: Monday, Sept. 23 2013 12:00 a.m. MDT

When a business operation starts up or expands greatly it is always because of profit. Profit is the wealth that is created when the return is greater than the investment.

It is a pure fact that the consumers of a business operation's product are the ones that pay all costs, wages, taxes, the return of the investment and the profit. If the consumers are within the area of the business operation then the investor will end up taking away more than he brought.

If government contributes to the profit by subsidizing the costs through tax deals, wage supplements, or consumer incentives or in any other way, the government is taking money from the taxpayer to give to the business operation. This raises the cost of creating the product and puts the extra cost on the entire society instead of just the consumers.

So is this an unbalanced kind of socialism where the society pays the cost in a socialism mode but the private company distributes the profit in a capitalistic mode?

Robert Neale

Salt Lake City

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