It doesn't matter what kind of market you have. The principles and cycle are the same. Raw materials are turned into products, consumers buy the products, and the cycle repeats itself. Econ 101.
And pre-revolution France also ran on profit.
Profit isn't the engine, free markets are.
Economics 102.
How does any market, or any economy, run without profits? Econ 101
I am not saying any can, of course profits are a necessity. Profit is not an option.
Profit is what creates growth, creates markets and is the reason they continue.
I am not saying profit isn't vital. It absolutely is.
My point is, just like anything else, there can be too much of a good thing.
Today's markets are profit driven to the max. And the faster a profit can be achieved - the better, even if that means future profits cease. They simply move their money to somewhere else and repeat.
They are sacrificing the health of the markets and businesses that make it up for quick profits.
Did you read the question posed in the root article? The question asked was, "where does profit rank?". FYI - Profit is the catalyst that provides the incentive to keep the cycle going. The cycle is raw materials, products, consumer, then back to raw materials, products, and then to the consumer. Econ 101.
Read the root post please. Check the question at the bottom of the root article.
Well you gotta admit the OP's post were a bit...unorthodox.
Profit is a required result of production/markets.
Without it, any business is temporary at best.
However, profit is not king. It cannot be the whole purpose.
A good example...
A company has little debt. It's real property is worth $2 mil. It's capital assets and inventory is worth $1 mil.
After taxes and reinvestment costs, both current and future, averages $300k net profit per year.
So in essence, selling the business and assets would gain you about 8 years of profit. (after taxes)
So you sell it. You cash in and now you can reinvest your money for a higher return, or even less return.
It is simplified way, this is happening all over America, and has been happening for the past 20 years.
Not just selling whole businesses, but assets and portions of a business for quick profits.