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For the love of Cthulhu! Repeat after me: Profit is not determined by how much value you create, it is determined by how much of that value you can capture.
by Eliezer 17y ago
For the love of Cthulhu! Repeat after me: Profit is not determined by how much value you create, it is determined by how much of that value you can capture.
Some value isn't easily captured and that's a perfectly legitimate reason for nonprofits to exist.
- billswift 17y agoI didn't say you should try to make as much profit as you can, but if you are not able to make anything, what evidence is there that you are benefiting anyone or even doing more harm than good? On the other hand, I've been following OB and LW since they started so I can easily see why you want to believe in the goodness of non-profits.
- Eliezer 17y ago> On the other hand, I've been following OB and LW since they started ...and you didn't pay for it, and we don't run ads. Do you feel that we benefited you, and did more good than harm?
- billswift 17y agoOn the economics of charities and their inferiority to markets, see Robin Hanson's post on OB a few days ago, http://www.overcomingbias.com/2009/09/lost-charity.html http://www.overcomingbias.com/2009/09/lost-charity.html