I worked many years in private business offices. Here’s a simple economics lesson.
Pretend I own a factory that makes widgets. I sell these widgets wholesale to stores for $5 each.
Now, out of that $5, it costs me $1 for materials to make each widget. That leaves $4.
Out of that $4, it costs me $3 to pay my employees to make the widget (including my matching of their contribution to Social Security, known as FICA).
That makes $4 total expenses so far to make the widget, leaving me with $1.