General Question

AGNUcius's avatar

What is the origin of profit?

Asked by AGNUcius (5points) 1 week ago

If I own an Apple tree, I own the Apples without purchase.
The price I pay is exactly the costs of production and profit does not exist.
Even if I hire others and do none of the work myself, those wages are a cost of production, and I cannot pay profit because I do not buy the Apples.
This could be also be done as a group owning an orchard.
If the co-owners are consumers who agree to accept the product itself as the return-on-investment, then profit does not flow, and yet these special investors are satisfied because the avoided paying the profit they would have paid if they had bought Apples in the market.
This seems to show the origin of profit is the consumer’s lack of ownership in the Means of Production along with our misunderstanding of the purpose of that ownership.

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15 Answers

snowberry's avatar

So, what’s your question?

elbanditoroso's avatar

I think you’re making a false distinction between the tree and the apples. You’re splitting them up, which I think is incorrect.

Your asset and your investment is the tree itself. That it sometimes bears fruit is interesting (and useful) but not really all that relevant.

Look at it this way. You plant the tree. It takes 6 years to mature and bear fruit. The tree is your asset – you need to water it and prune it and spray it – regardless of whether you get apples or not. It becomes productive after 6 years, which increases its value as an asset. The apples are simply product that your asset created.

After 20 years, the tree gets old and stops producing apples. Or there is some infection or tree blight. At that point the asset is either fully depreciated or is written off.

But again, the tree is the asset here, not the apple.

ragingloli's avatar

1. Charging more for a product than it is worth.
2. Paying your workers less than their work is worth.
3. Paying less for raw materials than they are worth.
4. All of the above combined.

Dutchess_III's avatar

Charging more for a product than it is worth…..somehow this reminds me of one of the less bright mechanics we had at the shop. It somehow came to his attention that we bought our ZTRs for $10,000 and sold them for $12,500 or so. He was just shocked that we sold them for more than we paid for them! That was just so WRONG to him. I just said, “Hey. Where do you think your paycheck comes from.” Clueless.

I’m not even sure what your analogy is supposed to mean, but the profit is what you use to pay your farm workers who pick the apple and, hopefully, have a little extra to help with your personal expenses too. Discovering “profit” isn’t rocket science.

Yellowdog's avatar

Profit is a bad thing! Everyone should starve and JUST DIE!!!

LostInParadise's avatar

The profit is the number of apples produced minus the number of apples given to workers and also minus what you could have earned if you did not have to tend to the apple tree and workers.

Dutchess_III's avatar

Yep @Yellowdog! Profit is just evil, I say.

ragingloli's avatar

@Dutchess_III
No, profit is what remains of your revenue, after you deduct all the costs, including what you pay your workers.

Dutchess_III's avatar

I know that. I was just trying to keep it simple. For example, my ditz mechanic couldn’t believe we sold our mowers for $2,500 more than we paid for them. Well, if we didn’t, he wouldn’t have a pay check. We wouldn’t have electricity. I wouldn’t have a house, a car. Everything over and above the cost of goods is what keeps things running, no matter what you call it in the books.

MollyMcGuire's avatar

My oh my. Is this a troll apple tree we’re talking about.

Dutchess_III's avatar

Yes
No
Maybe.

If you have no profit you have no life.

stanleybmanly's avatar

the bandit didn’t go far enough. The tree is indeed the investment, the apples are the profits.

YARNLADY's avatar

In the long run, there is really no such thing as profit since it all goes back into the marketplace eventually. It is simply “delayed” expenses.
It reminds me of people who complain about sending money into space. No money goes into space, it all goes into the economy.

awaisali's avatar

Benefit is an awful thing! Everybody ought to starve and Simply Bite the dust!!!

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