Thursday, August 25, 2005

Those in need, and those less so

As if we needed more reason to doubt any businesses trying to win dollars, tax breaks or lighter regulations by crying poor, Stats Can releases releases the latest data on corporate profits:
Statistics Canada says profits at Canadian corporations continued to climb in the second quarter, rising 2.9 per cent from the first quarter to $51.9 billion.

The agency says soaring oil prices lifted oil and gas extraction and refining profits to record highs, accounting for three-quarters of the overall profit gain.

It says profits have risen in 12 of the last 14 quarters, although the growth rates have moderated in the last three quarters.

Non-financial industries saw profits increase 4.2 per cent in the second quarter.

Note that the increased oil prices haven't undercut other industries, which still managed to contribute to the gain as well. Only the financial sector struggled due to lower bank profits, but there's a ready explanation for that.

Let's be clear that it's a good thing that businesses are doing well. But at the same time, this is added evidence that the corporate sector is the last part of Canadian society in need of more resources at this point.

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