Progressive

 

Professor Walt Williams narrated a Prager U video on 4/6/2015, entitled Profits Are Progressive. I wrote out some quotes from him and will comment on them.

 

Williams: “Profit, why is it important? A shop owner has many expenses when he sells you a $100 pair of shoes, and his profit is not that much, what is left over after his bills are paid. This is his reward for his time, expense, and risk.

 

Profits motivate people to work hard for themselves and make life better for others.”

 

My response: he is right, profits, unless there are excessive or gouging, are progressive and moral, for without profit, people will not be motivated to work, and if people do not work, we have no society, no future.

 

Williams: “Take Bill Gates. How did he make 70 billion dollars? He came up with something that millions of people wanted or needed so that they reached into their pockets to pay for it. His computer products are most useful, and he efficiently used resources to get them to market.  What motivated him and every other successful entrepreneur?  Profits.

 

Without the profits incentive why would anyone spend his savings, work countless hours, and take all the risks? He wouldn’t.

 

Take the supermarket: the average well-stocked supermarket carries over 50,000 products, a magical, miraculous cornucopia of products. Without profits, they would not be there because their makers need to make money.”

 

My response: Without profits, there would be no bounteous goods and services for consumers to consume.”

 

Williams: “Here is another reason why profits are so important. Which establishments are you most dissatisfied with? Government agencies. They do not operate for profit. No one there is rewarded for good work and not many there are punished for bad work.

 

Which establishments are you happiest with? Private businesses for if they dissatisfy you, you can fire them.

 

Not so the Department of Motor Vehicles or Public Schools (Ed Notes: Monopolies). You cannot fire these establishments. Business owners need to please customers or risk business failure or bankruptcy. Government establishments risk nothing. They have to please no one.

 

Am I saying we do not need government? No, but government should be kept small and limited.

 

The profit motive pushes people to do extraordinary things. Take away that motive, and we all lose.”

 

My response: Amen.