Monday, November 14, 2005
Profit is a good thing,
Today people have a hard time with any company earning high profits. Such words as "greedy" and "immoral" are used to describe companies that earn high profits. What is often overlooked is why profits are sometimes high. When a company's profits are high, that is a signal that somewhere in the economy consumers are being underserved. As a result competitors enter the market and consumers find their needs being met. Without a company earning high profits, there would be no incentive for competitors to enter the market and consumers would not have their needs met. Remember this when politicians bark about "excessive profits".