Welcome to Keith's night. Don't try non anyone in the
libertarian Institute here is the prophets section from a
spontaneous order the capitalist case for a stateless society.
One of the most incredible attributes of free markets is
the ability to harmonize our self-interests with the
interests of Greater Society. Contrary to the popular,
demonization of profits, as Action from Surplus, value
profits. In free markets, actually
represent the adding of value to society.
Making a profit in free markets requires, one to combine or
transform some Goods. In such a way that its resulting
configuration is valued more by the consumer than the cost of
Labor and original materials, including time used to produce
it. In other words, a profit is the
positive difference between the total cost of production and the
resulting price paid for a good or service by the consumer.
If Joe constructs a bench that cost fifty dollars in materials
twenty dollars in labor and ten dollars in overhead costs, we
fix cost of the facility utilities Etc then the total
cost of production would be $80. 0 assuming Joe is able to sell
the bench for $100. This would indicate that he
would have added over twenty dollars of value to society.
Remember prior to Joe's efforts the some value of the resources
and labor used only amounted to $80.
However, through his entrepreneurial Insight, Joe was
able to combine all of these resources in such a way to
create a That was worth more than the sum of its individual
components. Moreover, the trade is mutually,
beneficial Joe benefits because he gets to pocket 20 more
dollars than he originally possessed in the consumer
benefits by receiving a product that he or she must necessarily
value more than $100 all parties to any voluntary trade must
necessarily Sara Lee expect to be better off after conducting
the trade. Otherwise, the trade would never
have occurred in unhampered economies.
Profits are always and necessarily a win-win.
Thus, the Quest, for profits by way of voluntary exchange and
not political entrepreneurship, is surely a humanitarian one, it
should also be noted that profits need Not be monetary.
They may also be psychic for instance.
If one were to decide to give a homeless man on the street, $5,
this would not yield the benefactor a monetary profit.
However, the psychic pleasure he receives from the gesture is
more valuable to him than the $5.
He surrendered once again, such an act would be considered one
whose aim is profit. It is through Through this
concept of psychic profit that economists are able to explain
actions taken by actors in the economy that deliberately result
in monetary losses, monetary profits are merely a subset of
all possible motivations. Thank you for watching Keith and
I don't tread on anyone and the libertarian Institute.