Economics Dictionary of ArgumentsHome
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| Profit: Profit in economics is the difference between total revenue and total costs. It reflects the financial gain from business activities, rewarding entrepreneurs for taking risks and innovating. Profit is a key indicator of economic performance and drives investment and economic growth. See also Rate of profit._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Murray N. Rothbard on Profit - Dictionary of Arguments
Rothbard III 514 Profit/Rothbard: Do profits have a social function? Many critics point to the ERE, where there are no profits (or losses) and then attack entrepreneurs earning profits in the real world as if they were doing something mischievous or at best unnecessary. >Evenly Rotating Economy (ERE)/Rothbard. Are not profits an index of something wrong, of some maladjustment in the economy? The answer is: Yes, profits are an index of maladjustment, but in a sense precisely opposed to that usually meant. Def profit/Rothbard: (…) profits are an index that maladjustments are being met and combatted by the profit-making entrepreneurs. These maladjustments are the inevitable concomitants of the real world of change. A man earns profits only if he has, by superior foresight and judgment, uncovered a maladjustment - specifically an undervaluation of certain factors by the market. By stepping into this situation and gaining the profit, he calls everyone’s attention to that maladjustment and sets forces into motion that eventually eliminate it. If we must condemn anyone, it should not be the profit-making entrepreneur, but the one that has suffered losses. For losses are a sign that he has added further to a maladjustment (…) >Gain and Loss/Rothbard, >Rate of Profit/Rothbard._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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