Why PROFIT?

Question

Why it was tht in a market economy profit was the main aim…?

Answer 1

Because that is the most efficient way to allocate resources and provide goods and services. Replace profit with any other motive and it will not work.

Lets say the motive is just to product widgets. If no one wants widgets it doesn't matter you just keep making them. Resources are wasted producing widgets that no consumers want.

The market economy is about serving your fellow man in the most efficient manner possible. You can only make a profit by providing the goods and services that your fellow man actually wants and wants bad enough to buy them. In the same way the consumers make their wishes known by their purchases, and the price they are willing to pay. If an item is in demand and the production falls short of the supply the profit will increase providing producers with the incentive to try to increase their production. It is a beautiful system.

Just look at the local market for food. In most places you can go there and find whatever your want. No individual or government (unless you live in a communist country) decides what the marketers will have at the market. They bring what the people want.

If there was no profit their would be no incentive for production, and no money to increase or improve production. Without that motivation production always falls short of demand and usually like in North Korea and Zimbabwe people wind up starving.

Answer 2

Profit is nothing but the remuneration / reward for the entrepreneur who took all the risk of investing - which provides remuneration to all other factors of production. The more the scope for profits more the entrepreneurs will come to play and in turn more employment opportunities to the other factors, which lead to the development of economy. This is how the market economy will work.

Answer 3

This is an interesting question, and some of the best answers are found in the disciplines of economic anthropology and the sociology of religion.

Economic anthropology offers important alternatives to the market economy. One of these alternatives is the gift economy. In gift economies, gifts (such as pigs or shells) are exchanged between tribes. Giving a gift to another tribe implies that you have a certain amount of power over that tribe, and they must return the gift with interest.

In gift economies, objects that are given are seen as closely related to the person who gave them. To some extent the gift embodies that person. This is in contrast to market economies, where commodities are impersonal and not seen as connected in any way to the person who sells you the commodity.

Economic anthropologists also note that in capitalist economies money (and other commodities) are seen to have a life of their own and to some extent they control people and social relationships. This is in contrast to gift economies, where people control the gifts and the social relationships.

In studying the discipline of economic anthropology we can see that economic systems exist in which people and relationships are the aim of the economy, rather than profit.

In the discipline of the sociology of religion, Max Weber argues that capitalism was a direct result of the rise of protestantism in Europe and America. Because protestantism valued certain 'virtues' - such as hard work and saving rather than spending, capitalist economies were able to develop. As people saved rather than spent the profit they made, they were able to invest in their business, and so it grew.

Thus profit is the main aim in market economics because it allows for the growth and expansion of businesses, and of the economy as a whole. However, this seems to be a circular argument, and doesn't justify the exploitation and alienation of people who live where the market economy prevails.

Answer 4

In order to further the business in an expansive way so that profits can continue to flow in increasingly and enhance the owners' wealth.

When the owners become rich because of high profits, they will be able to get what they want - sports car, big houses, social recognition, political influences, etc.

Answer 5

Because people should continuously want to better themselves. If there are profits, businesses can expand, workers get paid more, and then people can spend more, therefore making society better off by supporting eachother more (this is assuming the majority of profits are remaining in the 'home' country).

Answer 6

Those who glorify this claim exclusive right to profit. If the consumer or worker wants to play for profit, he has to organize to make it a fair game; otherwise, it is man against millionaire. In reality, little piggies go to market--it is fixed just as much as Communism is. Right-wing theories are oinkonomics and are just cover stories for cheating.

Answer 7

Something for nothing days are almost spent, these days if you want something done somebody wants a cut so, abroad in some places if the price is e.g £5 you haggle to get it to £3 it cost you in the end £4 everybody`s happy? If the local supermarket pays 1p for something he sell it to you for 3p you think it`s cheap he`s happy you happy he`s made a third,without profit you cannot have the things you want it works with all.

Answer 8

I do think of there ought to be cap its ridicules that somebody ought to pay plenty to furnish a baby or little one a house. 7deac53145e96dfe13fd1db177d21rice shouldn't variety according to race it somewhat is likewise ridicules a sprint one or baby in want is a sprint one or baby in want regardless what their race is. needless to say one ought to declare that they [7deac53145e96dfe13fd1db177d217deac53145e96dfe13fd1db177d217deac53145e96dfe13fd1db177d21] are keen pay it and that's real. despite if it may additionally point the “enjoying container” for families who can no longer cope with to pay for to spend that ridiculous quantity of money to undertake yet nevertheless have adequate that that they could furnish a competent domicile for a baby/little one and furnish for at maximum the fundamentals. Lara could be appropriate with regard to the government dealing with all adoptions, no inner maximum corporation, companies could be under the government umbrella and any adoption could ought to be oked by way of the government. that easily seems to be the way some distant places international places do it. regrettably this could never take place for the fundamental fact all of us is grasping and 7deac53145e96dfe13fd1db177d21mericans are in all probability between the main grasping human beings. money, money, money. no count number who it may harm.

Answer 9

because whatever anyone does, it is done only for profit

Answer 10

heh.
the question should be "why gamble".
but ye....
great way to use your cash when you have nothing else to do with it.
or if you're just really desperate.