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> Specifically, what actually happens, in economic terms, to profit? Nothing good, it seems. Uhh . . . first it pays the bills allowing the company to keep run
by psunavy03 3y ago
> Specifically, what actually happens, in economic terms, to profit? Nothing good, it seems.
Uhh . . . first it pays the bills allowing the company to keep running, including your salary. Then the rest goes to shareholders, where it does things like power your 401(k) or if you're really old, your pension fund. Which then allows you to do nice things like retire someday.
- stanleykm 3y agoProfit doesnt pay for salary. Salaries are an expense to the company. Profit is whats left over after all of that and is what the company can give back to the shareholders through dividends and stock buybacks. I would guess that in a profitless world there would be something different than a 401k for retirement. Humans can exist without profits.
- robertlagrant 3y ago> Humans can exist without profits. Of course - and they did for a long time. But they couldn't have anything that couldn't be scratched out of the soil.