Is Microsoft listening to the ING guy?

I’m not naïve. I understand we live in a capitalist society. But if the National Football League can put a cap on player salaries, why can’t the government put a cap on corporate earnings? (an aside: perhaps Ralph Goodale should put a cap on secret budget surpluses, as witnessed today, but I digress.)

First off, let me start this off with a disclaimer: No, I am not a commie. All I’m saying is isn’t there some cut-off point when exorbitant profit figures just fade away into oblivion? Does any of it go into someone’s pocket? Sure, Billy Gates rakes in millions from the Windows empire, but that’s peanuts compared to the company’s yearly profit numbers (FYI Microsoft posted a US$2.9B profit in Q1 alone as of October 21).

So where does the money go? Back into the company? Some of it, of course. But all of it? I couldn’t tell you. I have no clue. And I bet even those tall white guys in suits don’t know either, otherwise they’d want a piece of the pie.

Granted, I am by no means an expert in business. The only business fact I know for sure is that Canadians have much prettier bills than the Yanks. But as a student trying to piece together some sort of savings for the rest of my life, I’m proud to say I have at least rudimentary skills in the art of finance. Yet I remain baffled – where do profits go?

In my case, when I earn more than I spend, I put my money towards good use by saving (that Dutch/German/Swedish ING spokesman was hard to say no to). Is that what Microsoft does? Is Microsoft, the person (remember that in the eyes of the law, a corporation is considered a person—credit to the documentary The Corporation), saving up for retirement, dreaming of a nice little cottage by the lake to settle down in?

Just think of the fabulous retirement Mr. Walmart – oh wait, there’s already a few rich Mr. Walmart’s out there – could plan for with his US$2.29B 3rd quarter profits (as of October 31). And let’s not forget our friend Bell Canada Enterprises. BCE could probably nail down a nice lot beside Kurt and Goldie with its C$484M 4th quarter profit (as of November 3).

All of which makes me wonder: would I be better off if I changed my name to Gabe Corp.?

posted by G E @ 11:58 p.m.