Profit would be appropriate if it were earmarked to offset difficult future fiscal periods, so that the business could continue to operate in lean times without having to punish employees through layoffs or failure to keep up with cost of living or cutting back on other benefits.
But we all know that’s not what happens. Owners never have to experience consequences; customers and employees always do, for things that they have no control over.
Absolutely, but I would even go as far as to say that things like rainy day funds or reinvestment should be considered costs of business not “things we might do with profit”.
Oh yeah, yeah - from a financial/reporting perspective, such a fund wouldn’t be considered “profit” in the strictest capitalist sense.
If you consider that kind of fund to be for the benefit of customers and employees, it might be considered “socialist profit.” Capitalist profit serves the ownership class. Socialist profit serves labor and consumers.
Profit isn’t required to maintain a company. Only enough revenue to cover costs. Everything else is a surplus.
Profit would be appropriate if it were earmarked to offset difficult future fiscal periods, so that the business could continue to operate in lean times without having to punish employees through layoffs or failure to keep up with cost of living or cutting back on other benefits.
But we all know that’s not what happens. Owners never have to experience consequences; customers and employees always do, for things that they have no control over.
Absolutely, but I would even go as far as to say that things like rainy day funds or reinvestment should be considered costs of business not “things we might do with profit”.
Oh yeah, yeah - from a financial/reporting perspective, such a fund wouldn’t be considered “profit” in the strictest capitalist sense.
If you consider that kind of fund to be for the benefit of customers and employees, it might be considered “socialist profit.” Capitalist profit serves the ownership class. Socialist profit serves labor and consumers.