Re: What is meant by PROFIT ?

[BILL MITCHELL <ECWFM@xxxxxxxxxxxxxxxxxxx>]

Greg:

this is total trash. is it your opinion? what analytical basis derives
these results? they are nothing more than the truisms that accountants
recite.


>"Profit opportunities arise when the prices of products on the product
>markets are not adjusted to the prices of resource services on the
>factor markets."

>"..profits arise from an absense of adjustment between the product market
>and the factor market; and that succesful entrepreneurship consists in
>noticing such maladjustments before others do."

>Israel Kirzner, Competition & Entrepreneurship

>"What makes profit emerge is the fact that the entrepreneur who judges the
>future pricesof the products more correctly than other people do buys some
>or all of the factor of production at prices which, seen from the point of
>view of the future state of the market, are too low."

>Ludwig Mises, Human Action

And from my perspective they also reflect the most superficial view of what
profits. They both source profits in entrepreneurial activity in the
_market_!   The quote from Von Mises also talks about factors of production,
without differentiating the inanimate from the labour power commodity.

Try thinking a little harder about this rather than merely repeating the
trash that orthodoxy has delivered for ever. Try thinking about the source of
profits - what is behind the realised sum of money we call profit.

Clue No.1 - it has nothing to do with exchange.
Clue No.2 - it has nothing to do with markets.
Clue No.3 - Von Mises, Hayek and all that lot wouldn't know the answer if they
fell over it.
Clue No.4 - try thinking about production relations, unpaid labour, and
capitalist ownership.

And beware, b/c i might just start quoting Marx and brethren.

kind regards
bill
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