Dr. Sowell engages in a bit of voodoo economics here, I fear. A supermarket can prosper with one cent of clear profit on each dollar of sales because that dollar comes back to be re—used again and again in the course of a year. If the inventory of a supermarket sells out in two weeks, that one cent comes back 26 times in the course of a year. This means that a penny of profit on a dollar from each sale becomes more than a quarter on a dollar annually. I know of no supermarket company that makes $0.25 per dollar of sales on an annual basis. Does he have any understanding at all of P&L's and balance sheets?For an economist this is a serious faux pas. Dennis Sevakis   8 24 06 Thomas Lifson adds: I think Dr. Sowell must have been misapplying the concept of the velocity of money. He's absolutely wrong here in a literal sense. If he had rephrased and said "that penny on a  dollar will come back 26 times in the course of a year, so a low margin...(Read Full Post)