Profit Seeking Advances The Tendency Towards Homogeneity!

Profit seeking has a revelatory effect in the economy. Seeking profit opportunities by examining them relative to each other, reveals what people want. This continually directs resources towards the production of those particular goods and services. The reason differential profits are possible in the real world is because not all firms are equally innovative or even able to mimic the innovation of others. In the real world innovation is an advantage, yielding differential profits because there is a lag time before others can catch up. The talents and creativity within firms is not equal and so part of the competitors’ strategy to catch up with the innovator is to lure away key personnel, along with intensifying both market research and product research and development.

As a consequence, profit seeking advances the tendency towards homogeneity, ironically offsetting the tendency for product differentiation. Necessarily, the tendency is for the rate of profit among close competitors to become equalized. Economy-wide profit-seeking leads to the tendency for profits in all of the different fields of endeavor to equalize in the market.

 

 

 

 

 

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Profit Seekers Create The Possibility Of Greater Cooperation.

In the real world it is the producer who most often takes on the role of perceiving and making changes, motivated by profit opportunities. Many of the opportunities for more efficient use of resources simply go unnoticed by non-producers because only those who are involved in the production process actually encounter them or understand them. Often these opportunities are the result of imperfect coordination between transactions in the resource markets and in the product markets. By involvement in the market process profit seekers create the possibility of greater cooperation between otherwise disconnected segments of the economy.

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Economic Modeling Using Subjectivism!

Divine Economy Model: A subjectivist model that describes the economy in the following terms: human spirit, transformation, law, order, purposeful action, capital structure, market, property rights, justice, and unity.

The degree of specificity and intricacy in this model has never before been achieved even though the logic and the concepts have always been there in both the classical liberalism tradition and in the Austrian economics tradition.

 

 

 

 

 

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The Profit Seeker Is A Risk Taker.

Profit seeking is just that – seeking. There is no guarantee. The profit seeker is a risk taker that uses market prices to determine what to produce or what can be produced more efficiently. The risks taken to initiate new production or improved production will yield various outcomes such as: lower price, better quality, and/or product differentiation.

The enticing wonder of the discovery of a profit opportunity, which keeps the entrepreneur coming back and entering into the market process, is the discovery of something obtainable for nothing at all. It is the same as the quest of the explorer and the artist and the scientist and the philosopher – to discover something never known before. The profit seeking motive is this same motivation, this same human phenomenon. Therefore as you can see, the profit seeking motive is part of the human operating system, something to be appreciated – not to be condemned as an evil.

 

 

 

 

 

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Two Human Virtues Resolve The Intellectual Property Issue.

Humility is one of the solutions to intellectual property: Ideas are drawn from the invisible and made visible. In other words the source is the first, not the latter. Since the source is invisible and incomprehensible it cannot be designated as mine or thine.

Another solution is magnanimity!

 

 

 

 

 

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Actions of Profit Seekers Benefit Everyone.

We humans, endowed with the propensity for alertness and classified as Homo agens, act upon the information about what is valuable. Some are passive, only finding ways to increase their own happiness. Others are out there as profit seekers, and their actions benefit everyone.

These profit seekers try to identify the relevant ends-means framework and how to make it more efficient. Through their efforts to discover price differentials throughout the economy and along the time horizon they bring to the surface market knowledge. Their actions benefit themselves but also everyone else.

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Economic Intervention Morphs Government Into The State.

Governments voluntarily chosen, in diverse sizes of societies, are perfectly natural. What has been the source of the corruption of government is economic intervention by limited human minds upon an infinitely dynamic market process. The morphing of government into the State is certainly associated with economic intervention.

The tradition of classical liberalism, with the laissez-faire of the Continental economists and the unhampered market economy of the Austrian economists, provides an ample moral and scientific foundation for justifying the establishment of order without the corruption of societies that is associated with the State.

Obviously what stands in the way in these – the Dark Ages of economics – is the general nescience of true economic science and so the task ahead is to educate people as part of the process of advancing civilization. There is no better or more comprehensive tool to accomplish this than the promulgation of the divine economy theory. Consequently this is the generation that needs to acquaint themselves with the divine economy theory so that the ills associated with statism will be effaced sooner rather than later, and peacefully.

 

 

 

 

 

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