Q1. What kinds of behaviour are engendered by the hope of profit? Is such behaviour better or worse, on balance, than the behaviour we should expect if all enterprises were owned by charities or governments?
-
Introduction: Discuss how hope of profit is the core motivator in capitalist market economies. It drives businesses to produce, innovate, and compete. In contrast, charities and governments are meant to aim to serve public interest, often without financial return.
- May mention own experience with Arise
-
What behaviors does hope of profit engender?: There’s incentive to innovate, be efficient, and respond to demand when there’s hope of profit.
-
Negatives of profit motive: Negative externalities (e.g. pollution). Example: fast fashion
-
What if all enterprises were owned by charities or governments?: The goal is to meet needs (theoretically), there’s equity of access and opportunity, however also less innovation and less progress. For example, public schools and hospitals. Corruption is also highly likely when enterprises don’t have the hope of profit from their transparent work.
-
Better, worse, or on balance?: Private firms with hope of profit will be more advanced and equipped. While governments and charities ensure more equal access. However, private firms also have shareholders that they answer to while charities and governments are often less transparent though they answer to the community.
- Although idealistically and in theory it would seem like charities and governments would engender better behaviors, in reality it is quite in balance with organizations that do have hope of profit.
- Resources: List out the articles and resources links first before starting to write.