Thoughtforfood said:
Actually, I won't expand on the myriad of problems with your premise. I will however ask you one question. Two people come to you and say that they are taking up money for cancer. One says that they are in the business of cancer, and that some of your money will go to cancer research, and the rest is profit, salary, and commission. The other guy is from a non-profit (which means that they spend all of the money they take in, keeping none as profit), and that they spend only 20% of their money on administrative necessities, and everything else goes to cancer research. Who do you send your money to?
The thing is that is not even the most illogical part of your "for profit because it is the greatest thing since sliced bread" thought process.
I'll answer your question when you answer mine. Back up what your saying, don't ignore it. Ignore a question is too easy.
Actually, i'll answer your question. neither. I have one designated charity (it's not a cancer charity) that I like to give to and the CEO receives a paycheck of $300,000. I have no issue with that becoz the charity does a good job. its a well run organisation that provides a large benefit to a large number of people. the point is that this organisation does it efficiently, and if a few guys up on the top rung pocket some money for their work then so be it, they deserve it. If you took that profit away from them, would they work as hard to deliver results? Answer = NO
Just because a charity says they break even so as to deliver as many funds to the needy as possible, certainly does not mean they are doing a good job at it. They are potentially wasting more money than a for-profit charity is.
Aapjes said:
In some cases profit does mean exploitation. Marxism claims that capitalist society has certain characteristics which means that employers can get away with paying minimal wages to workers, exploiting them. Dubai is a good example of a society that mostly fits Marx's definition of a capitalist society and in which (foreign) workers are exploited quite badly. However, in the 1st world, our societies are mostly (no longer) like this, due to democracy, unions, better education, welfare, etc. Arguably, our western societies are not purely capitalist, but capitasocialist. IMO, this balance between capitalism and socialism is what makes our societies work.
This need for balance is why I disagree with people who advocate an extreme position. People who claim that profit is bad are just as wrong as the people who claim that non-profit & government cannot do anything right and unlimited freedom for business interests is needed.
I'm afraid I disagree with our interpretation of the word exploitation. It has negative connotations that make it sounds worse than it is. Workers that are paid low wages have many reasons all pointing to it being the most efficient. That's life. That's why we have choices.
I also don't agree with what you said about democracy, unions, education etc. Take democracy for example and as a result of democracy a hypothetical country has a minimum wage of $10/hr. Now somewhere out there, there is a worker willing to work for $9. He is currently unemployed and can't find a job. If a company were allowed to pay him $9 to work they would, but instead the guy remains unemployed becoz govt regulations state he must be paid $10. Forcing companies to pay a minimum wage
increases unemployment.
Sure wages increased, but at what cost? Minimum wage regulation is not the best idea, IMO
kurtinsc said:
Points:
Capitalism is about efficiency... but it's about efficiently MAKING MONEY. That's the key thing you have to understand when applying capitalism to any concept. If you apply it to something like medicine, capitalism will NOT find the best answer solution for an individual... it will find the most profitable one. The two are NOT necessarily the same thing.
Second, altruism is NOT part of capitalism. An individual can be altruistic in a capitalist society, but the basic economic framework is based SOLELY on greed. Altruism actually breaks the economic model capitalism provides.
I completely disagree. In a standard economics textbook the argument that altruism breaks the model of capitalism may be seen, but that model is growing old now.
Modern analysis suggests that players in the capitalist model are indeed altruistic. Search any economic database to find numerous references on this. I'm not trying to prove your view as incorrect, but my point is merely that the "capitalist = greedy" argument is slowing making its way out the door and into the abyss. It's an outdated and ridiculous heavy assumption and its implications are too generalised and rigid.
The economic framework is not based on greed, it's based on utility.
Fair enough if that's your contention that capitalist = greed but again, i'll disagree.