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Profit is fine. It's how society tells you that your customers value what you are producing more than it costs you to produce (after paying suppliers and worke
by eru 1y ago
Profit is fine. It's how society tells you that your customers value what you are producing more than it costs you to produce (after paying suppliers and workers etc). That's how you avoid the massive misallocations of Soviet communism.
(Well, the Soviets did have one sector that performed reasonably well, and that's partially because they set plenty of decent incentives there: weapons production and the military.)
Now you could say that the 'wrong' activities are profitable. And, I agree and I am all for eg CO2 taxes or making taxes on equity financing cheaper than those on debt and deposits (to incentivise companies, especially banks, to rely more on stocks than on debt, to decrease brittle leverage in the economy); or lowering subsidies for meat production or for burning food instead of eating it etc.