.
We all have a finite number of minutes in this existence. The clock is ticking down to our death. Time is precious. We also have a limited amount of energy that steadily declines as we age. If we spend our time and energy doing something it's not available for other things. It's a limited resource.
When someone sells something for more than the cost of production we call that a profit. However it's important to remember that the seller's time and energy has also been expended. Their time and energy belongs to them. Therefore when they serve us they have lost something and they deserve to be compensated. Some people are far more capable that others and therefore their time and energy is far more valuable than others.
To doubt that a profit can be fair is to doubt that you own your body.
Of course profit is fair. If my neighbor can sell eggs to me at a profit of 1 or 2 dollars a dozen, that is far better than me taking time off my work to raise chickens and collect my own eggs. We are both above what we would be otherwise. It only becomes unfair if he is the only person allowed to raise chickens and collect eggs and so he decides to profit much more on a dozen.
Hello Rosie:
Are fair and profitable compatible?? I dunno. Lemme ask you... I got a very good deal on a rented house in Steamboat Springs, Colorado.. The house COULD have been rented for a LOT more money.. But, the landlady was happy with what I was paying and I was happy.. Was that fair???
But, wait.. There's more.. The house included a little one bedroom attached apartment. I managed to rent it to a friend for LESS than the going rate for one bedrooms, but MORE than enough to cover my rent. I even put a few bucks in my pocket each month... So, I was making a LOT of money. But, everybody I was doing business with was VERY happy with the arrangements. I'd say it was fair..
I was in the security industry.. I managed to sell alarm system monitoring for $25/mo when I was only paying $6/mo. Was that fair?
excon
Howard Katz:
OK, how can we be smarter than the other guy? How can we make money in the markets by taking it from him? Well, there is one thing about economics that a lot of people do not understand. In the 13th century, Thomas Aquinas said that every good had to sell at its fair price.
Now this is wrong, dear gold bug. Adam Smith taught that there was no such thing as a fair price. The only "fair" price was the price agreed upon by buyer and seller. However, most people do not understand this. They are back in the 13th century with Thomas Aquinas. So we believers in Adam Smith are smarter than the believers in Thomas Aquinas, and we are going to use these smarts to take their money.
http://www.gold-eagle.com/editorials_08/katz081709.html
This seems fine for olden times, but doesn't really apply to Super Conglomo Corp.
1) Fine because it was all private arrangements if the "landlady" knew about your money making scheme.
2) Not fair.
You didn't answer my question excon. You're giving me a lot of examples none of which help at all. Here is exactly what I am asking you. What percentage is fair to both supplier and consumer? 100% markup? 50% 300% 5000%? Is there a percentage profit you can choose that will be satisfactory to me? If it costs you $1 to manufacture something and you charge me $100 I think that is grossly unfair. As a consumer. You as the producer get to keep $99 profit. That $1 cost includes everything including cost to produce it, materials, payroll, benefits, whatever. I am not in business but I think the question is fair . You are fair. Why not get together with my fair question and give me an answer of what you think a fair profit for you would be PERCENTAGEWISE that would not be egregiously gouging
to me your dear and long-time customer. OKEY DOKEY?
