Virtually none of the premises are correct and the conclusions would not follow even if they were. Hedge funds have the highest expectation of profit and are unregulated, yet they are weathering the current crisis better than the heavily regulated banks. Excessive and irregular monetary stimulus coupled with misguided housing policies are the problem.
Please leave economic issues to those who know something about economics.
The staff at EE Times should really stick to technical articles. Once they go political, they are well out of their league. The current issue is not due to greed, short sellers, speculators, or anything of the like. It's due to simple corruption in the government. Follow the money.
By putting a cap on profit margins at 12 percent, you would remove the incentive of the inventor to improve upon cost by any more than 12 percent. Any major discovery that would reduce the cost of a product/service by, say, 80% would immediately reduce the price of the product by 68% to keep the profit at no more than 12%. That would destroy a business if the supply/demand curve were maximized before the discovery, since the actual profit, not the percentage profit, would be significantly less. The incentive to increase margin by reducing cost- the engineer's great contribution - would be obfuscated.
I know that personally as an inventor, such a 12% rule would drive me to immediately put away my schematic design software and assembler/compiler, hang up my soldering iron for good, close up my digikey account, and call my various entrepreneur friends and tell them I'm no longer interested in working on any of the 7 or 8 next greatest "widgets". With 12 % I might be able to afford my dream home by the age of 70, and that's assuming 0 inflation, which actually may be the case given your communist approach to the free market.
NASA's Orion Flight Software Production Systems Manager Darrel G. Raines joins Planet Analog Editor Steve Taranovich and Embedded.com Editor Max Maxfield to talk about embedded flight software used in Orion Spacecraft, part of NASA's Mars mission. Live radio show and live chat. Get your questions ready.
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