Burgess COMMENTARY
Something is very wrong with the way the modern laissez faire money profit capitalist market system is working. That much is clear.

If I was the CFO of the global economy, the first thing I would do is to mandate the use of an improved system of accounting both for business and the other organizations that make up the economy and the society. The present system of money profit accounting has been very good in the sense that managers have had to be accountable to the investors ... but this system of double entry accounting for money profit does not address the broader issues of the performance of all economic activities in the context of society and the economy as a whole.

The improved system of accounting would be one based on the ideas of TrueValuemetrics and Value Accountancy ... and would address not only the money aspect of transactions and economic activity, but also the value flows that impact people and place through all the value chains that are affected by the economic activity.

The analysis of all value chains associated with any, even a small and simple economic activity, quickly becomes complex. It is still very important. The question of quantifying value is another complex issue, but also is very important. Value, and all the things that comprise value, have more impact on quality of life than money, and when they are ignored, the results are likely to be worse than they need to be. In fact, the possibilities of a society where better decisions are being made is so much better than we seem to be able to achieve under the Adam Smith style of laissez faire market based decision making that seems to do little more than make the very wealthy wealthier and leaves almost everyone else out of the game.

It is really clear that the modern laissez faire money profit capitalist market system works quite well to create money profit, but it is equally clear that there is a huge proportion of the population that gets excluded from this system, and also clear that the allocation of resources to critical investment for society and the environment will never be made. Is there any major corporation that can report on its social valuadd with anything like the same confidence it can report on its money profits? Until this is taken care of, the economy will fail most of the world.
Peter Burgess

Corporate Profits After Tax

Corporate Profits After Tax seem to have done very well over the past few years, even though economies have done very badly, and governments and nations are tottering on the brink of bankruptcy.

HOW CAN THIS BE? WE'RE SUPPOSED TO BE IN THE MIDDLE OF A BIG RECESSION! So the recession is all fabricated to rob workers of jobs, homes and income?????? Corporate profits reached a record high in the third quarter of this year--wages hit another all time low. Additionally, the growth of third quarter profits was accounted for entirely by banks and financial companies.

Washington talks about 'shared sacrifice', but where is the shared prosperity? SHARE if you think its time we ALL benefit from the economy--not just banks and corporations.

United States corporate profits reached a record high in the third quarter of this year, even adjusted for inflation, according to a report from the Bureau of Economic Analysis.

Source: Bureau of Economic Analysis via Haver Analytics.

The increase from the second quarter was entirely a result of stronger business at home. Profits received from American-owned businesses abroad fell slightly in the third quarter, which may not be surprising given the recession in Europe and the slowdown in China.

Additionally, all of the growth in domestic corporate profits was accounted for by the financial sector.

Domestic profits of financial corporations rose $71.3 billion in the third quarter, after falling $39.7 billion in the second. Domestic profits of nonfinancial corporations, on the other hand, decreased $1 billion in the third quarter, after rising $27.8 billion in the second quarter.