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Double dip, with sprinkles on top

Apple just had its best quarter ever with net income rising 78 percent to $3.51 per share. Revenue rose 61 percent, to $15.7 billion.

On average, Wall Street analysts had expected Apple to report net income of $3.12 a share on revenue of $14.75 billion.

If this is a double dip recession, then I’ll take triple dip with sprinkles on top.

  • Fred

    This is a depression. But just because the economy is shrinking in real terms does not mean that outstanding companies can't grow. I wish apple the best of luck, but if you want to understand your real returns it's important to include inflation which had crept up to %20 under bush and is probably %35 now.

    For a good intro to economics, check out Harry hazlitts economics in one lesson, or http://mises.org

  • Adam

    Actually, we're in a period of deflation. And we've been no where near 20% inflation in the last decade. Looks like it may be someone else who needs a lesson. :P

    http://inflationdata.com/inflation/inflation_rate

  • Fred

    One of the greatest deceptions of keynsian economics is to measure a few prices and call that "inflation". This is very convenient for government because whenever the prices of any goods get too out of line, they just change which goods they measure the prices of. So, they can report inflation to be low if they like. They don't even pretend to measure a general basket of goods anymore, as, for instance, the most directly sensitive to inflation prices– major commodities like oil and gas- are excluded.

    When economists talk about inflation, they're talking about growth in the money supply. It is true that such growth will eventually, all things being equal, lead to a rise in prices, but all things are not equal. Productivity growth has a deflationary effect, for instance.

    The idea that we're in a deflationary period is absolute nonsense, not even that fraudulent chart you linked to makes that claim. Of course if you want to look at the price of goods then you can look at the families across the country who are hurting because costs are going up.

    One of the effects of inflation is that families across the country are now hurting because government spending is unhinged.

    But we don't need to try and derive inflation from a secondary effect, we can measure it directly. Inflation is simply growth in the money supply.

    Since government cannot ever act responsibly and keep within a budget, it inevitably seeks to spend money it doesn't have. So, it cranks up the printing presses.

    This irresponsibility has gotten to the point that government is keen to hide it, and has created this religion of pseudo economics that claims that when people get wealthier ("deflation") this is somehow bad and the government needs to be irresponsible to prevent it!

    If you think about it, if the money supply were fixed we'd have a stronger economy. As technology advanced and productivity grew, the purchasing power of the currency would go up and everyone from businesses to individuals would be able to buy more on their current budget, eventually poverty would go away, but more importantly, this effect would feed on itself as more R&D could be purchased for a given unity of currency boosting the effect further.

    With technology prices go down as technology advances. It doesn't hut technology companies. Deflation is not bad for the economy.

    Inflation, which is generally the result of reckless spending, is, as it deprives businesses and individuals of the purchasing power they need to make their purchases, causing them to need government aid, which exacerbates the problem, since government spending is the source of inflation.

    This is all very straightforward and pretty obvious if you think about it. Yet I've met legions of leftists and more than a few rightists who reject it out of hand because it goes against their ideology.

    Fine, but if you want to disagree, make the argument. Don't just make a stupid assertion and then say I need a lesson.

  • addicted

    Actually, this is not surprising at all.

    The fact is that the "depression" is being felt at the bottom of the social ladder. The richest quartile is better off than they have ever been (better off than they even were in the Gilded Age).

  • pk de cville

    Fred,

    You don't need or want a lesson. You're convinced.

    Let's just say your 35% estimate of inflation seems astounding and I'm not interested in a lesson either.

    Regards,