Profit

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Revision as of 14:13, 8 May 2010 by Agnucius (talk | contribs) (Profit is the difference between the Costs the current Owners paid for last round of production and the Price a Consumer (or User) pays to buy that product.)
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Profit is the difference between the Costs the current Owners paid for last round of production and the Price a Consumer (or User) pays to buy that product.

Profit == Consumer_Price - Owner_Costs

Treating profit as a reward for current owners is a Positive Feedback loop that centralizes control, causes overaccumulation and incents scarcity and destruction.

Treating profit as the payer's investment is a Negative Feedback loop that distributes control to those who are willing to pay (in the end - those who are willing to work), and stabilizes the system through auto-leveling caused by Consumer ownership in Physical Sources being a Short Circuit Production that minimizes and finally eliminates profit altogether.