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Abstract
Psychology and Psychotherapy: Research Study
Corporate Profits and Economic Health
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Open or CloseJohn P O’Connell1* and Arthur Jonath2
1 Professor Emeritus, Department of Chemical Engineering, University of Virginia, Charlottesville, VA, USA
2 Co-founder, Profit and Entropy, Portola Valley, CA, USA
*Corresponding author:John P O’Connell, Professor Emeritus, Department of Chemical Engineering, University of Virginia, Charlottesville, VA, USA
Submission: July 23, 2026;Published: August 05, 2026
ISSN 2639-0612Volume6 Issue3
Abstract
Distribution of corporate profits affects the health of an economy. Choosing to reinvest into expanding capacity, supporting employment, and stimulating spending can contribute to economic health. Alternatively, extraction into idle accounts, diversion into nonproductive assets, or repurchasing stock can weaken circulation and increase wealth disparities. Our work on profit distribution and macroeconomic cash flow gives a rationale for encouraging productive reinvestment and suggests a non-value-added tax policy that could reward value creation and discourage value extraction.
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