Corporate Profitability and the Economy

 ‘… Business Council of Australia chief executive Katie Lahey said company profits were vital to fund government investment in Australia’s future prosperity. Ms Lahey this week called on the government to support “productivity growth and flexibility” in the workplace “while protecting against wage break-outs across industry sectors”. The BCA says that higher profits play an integral part in delivering higher tax returns to the government and help to fund future infrastructure developments that will, in the long-term, ease inflationary pressures.’

From ‘Who Is Driving up Inflation?’ by Stephen McMahon, Herald Sun, 26 January 2008, p. 100.