when our founding fathers established this republic they created a political and economic system unique i'm only a system which has led the united states to the bloody pinnacle in lent and then what a leadership welfare as would be a goose that lays golden a we're going to discuss profit it's indefensible place in our economic system its immediate barrier to each individual citizen and its relationship to economic progress in our nature the profit system in america is truly a goose that lays golden age that makes possible our abundance of so many of the material blessings of life system with its intent is for achievement to make it possible for you and for me and for all americans to have the advantages enjoyed by no other people under any other system of the socialist and communist and their fellow travellers speak to undermine the confidence of americans and their economic system they concentrate their major attack against profit and the profit system so let's examine profit our own self interest in it and its  company that made the fiber pregame sweater spent several million dollars on research before developing the chemical pramila in the manufacturing process that made it possible and try to get the several million dollars from profit yes from the profit retained in the business to explore and they and and to develop new products it seems to me that danes sweater with its beauty and excellence and its comparatively low cost gives us an excellent example of another value of the property system profit in a very real sense is the fuel that motivates the machinery of our products providing us with better things for everyday living the opponents of the profit system center their fire on the cooperation of business profit so let's take a closer look at these problems in the last year for which we have the official statistics of the department of commerce our national income was approximately three hundred billion dollars net profit of all the corporations in america i'm not a true five and nine ten percent of the total income are about seventeen billion eight hundred million dollars and here's the rest of the national income this slide we find that a part of the net profit nine and nine ten billion dollars of paid out in dividends to the stockholders can someone give us a figure on the number of stock holders with their dimes and dollars population after dividends this slices the amount that was probably into the business two and sixpence per cent are seven and nine tenths billion dollars to buy a new machine to pay for research to develop new production methods and new products to expand the plant to help build you plant to make new jobs and to make the present jobs better a special interest to the consumer public to make better products at lower cost like james sweater for it we have been talking about the divisions and national income now let's have a look at profit from the viewpoint of the sales o in the last year for which we have official figures the annual sales of all the cooperations in america total five hundred and eight billion fifty two million dollars now i would like to have some estimates as to the percentage of profit profit after taxes total sixteen million nine hundred sixty million dollars three and one third percent not pin mark twelve or fifteen percent but three and one third and we mustn't forget that frequently thousands of companies fail to make a profit or rather they sustain a lot of our system might well be called a profit and loss system we can narrow our examination of the profits still more by looking at the annual financial statement of one company i have chosen a big packing company dealing primarily in the processing of meat products here is a breakdown of its sales dollars this big slice seventy three and to ten cents out of  name is familiar all over the world actually making less than one penny a net profit on each dollar's worth of products sold let's consider it this way if the profit margin of this packing company built a new plant and created a host of new job opportunities each new job in american industry and didn't really require the investment on the average of twelve thousand dollars promised scenery plant working capital and so forth twelve thousand dollars for each job created with our growing population we must create nearly one million new jobs a year a big share of that money to create the jobs must come out of the profits of cooperation so we see how vitally important profits are how much they mean to every citizen necessary a profit are to every successful company and its employees and to a healthy progressing nation we have learned that cooperation profits on the average are a great deal smaller than most people believe that the profit dollars are the profit to any work in marvelous ways that this material blessing for all americans profit is truly the lifeblood of our progress the accelerator of the rising living standard of america which is the envy of all the world our next discussion will be on freedom and security but for now the american adventure series is a production of the national education program searcy arkansas dr georgia spence and director dr clifton l gainers jr was our instructor this is a continuing series based on the unique political and economic system which has made america great watch for the next presentation of the american adventure