Tuesday, June 23, 2009

Understanding Profit Is Pretty Basic!

Following logic similar to that of Turgot: The purpose of production is profit so that the fruits of production can be purchased and consumed!

What could be more basic? Who is opposed to consumption, and if so, they will perish from starvation soon and no longer will there be any to say that they are opposed to consumption?

To consume requires acquisition of consumption goods which requires a productive endeavor yielding an income. Productive endeavor yielding an income is profit!

In contrast, a productive endeavor that fails to yield an income is loss. This will not be chosen again or emulated by anyone who is trying to live prosperously.

Profitable endeavors will be the ones pursued and these will yield fruits of production that will enrich society and thereby increase prosperity.

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