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by vezzy-fnord
3848 days ago
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I don't deny the profit motive. I deny a) the normative claim of there being some form of malevolence in it, b) the idea that it's the only thing firms maximize for when in fact we clearly observe that firms will sacrifice some profit for both internal equilibrium and sending out consistent signals to consumers and c) that a profit motive will not exist in a hypothetical socialist or communist society. Whether it's the manorialist collecting rent on land or the bartering farmer balancing their supply of wheat traded to remain at a surplus while keeping a stock of other consumer goods they've bought, there's always a profit motive. The manorialist profits either from use of a land title or the use of land as a factor of production. The farmer profits by having their supply of goods be at a state where the marginal product of each good provides increasing returns for satisfying their ends. In other words, the farmer profits from having a heterogeneous stock over a homogeneous stock because they can use the former to obtain further goods to diversify their portfolio, or trade so as to improve the serviceableness and efficiency of their factors for growing wheat. |
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Regarding c), I believe a communist would say that in a state-less and money-less society, it is not possible to appropriate wealth in the abstract (there are no means to do it). So it's not the motivation for profit that is abolished, it's the possibility of profit itself.