In 2015 I wrote about whether tech company profits were too high. I explained that the since about 90 percent of all tech startups either lose money or at best break even, the high profits of the few are needed to keep investors funding the sector.
However, critics of America’s tech giants (see here and here) continue to cite high corporate profits as one reason for breaking up Big Tech. And their views are gaining traction with some politicians and pundits.
So I’ll try again and explain the role of profits in providing dynamism in tech, hoping (perhaps foolishly) that logic and evidence matter in this debate.
Read Dr. Mark Jamison’s full blog post online at AEI.