There is nothing wrong with making a profit. People have to be paid, after all, and that includes the ownership who put the money at risk in the operation to begin with. The problem is when making a profit becomes the only motive.
Every company is established with the purpose of offering a product or performing a service that makes their customers’ better or simpler. If is successful, it grows from nothing to something in a relatively short period of time. Then it gets the attention of the Investor Class, who shovels money into it with the expectation that it will sustain that growth. Now, the focus is on Building Shareholder Value, and the customer is seen as a necessary evil toward that goal.
The worst thing that ever happened was when we decided that public corporations had a duty to maximize shareholder value above everything else. It renders all those mission and vision statements irrelevant. No matter how much the CEO says the firm’s goal is to make the world a better place through selling stuff, we all know it’s a lie. Their goal is to enrich tthemselves, at our expense.
If the people putting money in deserve to be paid for that money, it can be treated as a fixed term loan, with an established interest rate. That makes it a business expense.
Profit is what’s left over after everyone is paid for their work, and the costs of materials, housing, and maintenance - invluding the maintenance of debts - are covered. It’s either what you’ve over-charged your customers, or underpaid your employees.
The most amazing part is not even that long ago, everyone agreed this is how it worked, even the business owners. I remember recently watching the 1923 silent film “Safety Last!” starring Harold Lloyd. I was very struck by a particular scene in the film where the owner of the store Harold Lloyd works at says:
“I’d give $1000 for a new idea that would attract an enormous crowd to our store. Something is wrong with our exploitation! We simply are not getting the publicity that our position in the commercial world calls for.”
This character is not presented as some kind of villain or saying something wrong. He’s just talking about how everyone understands business to work, by exploitation, which has always simply meant taking advantage of some kind of opportunity, even when people like Marx talked about it.
It’s one of the reasons I couldn’t go into the defense industry. Not just working on weapons that are deadly to enemy combatants and innocents; but making profit off of doing so.
If there becomes a point in my career where it’s clear that my work doesn’t make things better, then I know I’ve made a mistake.
I know a couple of people who had jobs working with a defense contractor. One of them justified it by saying he doesn’t actually work on missile projects, his department does as air traffic control systems (and sure, there’s nothing objectionable about that). But they both knew what their company did and it certainly did make it an uncomfortable place to work. You can tell yourself that these weapons only get used on bad guys, but I think the more you have to tell that story, the harder it is to hear yourself.
Everything I got offers for were weapons platforms, fire control systems, or guidance.
The exact same time I was going through these a cruise missile in Yemen hit a school bus full of kids - obviously one American made sold to the Saudis.
My kid wasn’t in school yet, but I looked at him, shook my head and said nope. Can’t do it. Won’t do it. Turns out I do value things other than fun projects and money, and by a huge margin.
If the USA keeps putting off single payer. The first thing that should happen is all health insurance companies be required to become non-profits and cap CEOs and other c levels pay at a certain % of the lowest paid workers.
There is nothing wrong with making a profit. People have to be paid, after all, and that includes the ownership who put the money at risk in the operation to begin with. The problem is when making a profit becomes the only motive.
Every company is established with the purpose of offering a product or performing a service that makes their customers’ better or simpler. If is successful, it grows from nothing to something in a relatively short period of time. Then it gets the attention of the Investor Class, who shovels money into it with the expectation that it will sustain that growth. Now, the focus is on Building Shareholder Value, and the customer is seen as a necessary evil toward that goal.
The worst thing that ever happened was when we decided that public corporations had a duty to maximize shareholder value above everything else. It renders all those mission and vision statements irrelevant. No matter how much the CEO says the firm’s goal is to make the world a better place through selling stuff, we all know it’s a lie. Their goal is to enrich tthemselves, at our expense.
If the people putting money in deserve to be paid for that money, it can be treated as a fixed term loan, with an established interest rate. That makes it a business expense.
Profit is what’s left over after everyone is paid for their work, and the costs of materials, housing, and maintenance - invluding the maintenance of debts - are covered. It’s either what you’ve over-charged your customers, or underpaid your employees.
And that’s wrong.
The most amazing part is not even that long ago, everyone agreed this is how it worked, even the business owners. I remember recently watching the 1923 silent film “Safety Last!” starring Harold Lloyd. I was very struck by a particular scene in the film where the owner of the store Harold Lloyd works at says:
“I’d give $1000 for a new idea that would attract an enormous crowd to our store. Something is wrong with our exploitation! We simply are not getting the publicity that our position in the commercial world calls for.”
This character is not presented as some kind of villain or saying something wrong. He’s just talking about how everyone understands business to work, by exploitation, which has always simply meant taking advantage of some kind of opportunity, even when people like Marx talked about it.
I added an edit to clarify my reflection.
It’s one of the reasons I couldn’t go into the defense industry. Not just working on weapons that are deadly to enemy combatants and innocents; but making profit off of doing so.
If there becomes a point in my career where it’s clear that my work doesn’t make things better, then I know I’ve made a mistake.
I know a couple of people who had jobs working with a defense contractor. One of them justified it by saying he doesn’t actually work on missile projects, his department does as air traffic control systems (and sure, there’s nothing objectionable about that). But they both knew what their company did and it certainly did make it an uncomfortable place to work. You can tell yourself that these weapons only get used on bad guys, but I think the more you have to tell that story, the harder it is to hear yourself.
They’ve both moved on at this point.
Everything I got offers for were weapons platforms, fire control systems, or guidance.
The exact same time I was going through these a cruise missile in Yemen hit a school bus full of kids - obviously one American made sold to the Saudis.
My kid wasn’t in school yet, but I looked at him, shook my head and said nope. Can’t do it. Won’t do it. Turns out I do value things other than fun projects and money, and by a huge margin.
profit is the excess, the infinite growth
If the USA keeps putting off single payer. The first thing that should happen is all health insurance companies be required to become non-profits and cap CEOs and other c levels pay at a certain % of the lowest paid workers.