Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
09 August 2017 | Pago Pago, American Samoa
09 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa

What Is Profit?

08 August 2017 | Pago Pago, American Samoa
Kimball Corson
This question has befuddled many for a long time. Here are some of the answers people have come up with:

--an accounting category
--the return on capital
--a compensation for business risk
--extra compensation to attract resources into that industry
--a catch all category to hide perloinings
--what's left over after all variable and fixed costs

All have an element of truth, but three. It is not a return on capital because that is a factor cost that has its own separate compensation, usually as interest, regardless of how badly the books are kept. It is not a compensation for business risk, because the higher it is, the less risk there is. It is not simply an accounting category because that tells us nothing about how it is arrived it.

To be sure it is a theft category to hide what is 1) stolen from labor by fiat, by monopsony returns and by other means; 2) by monopoly returns extracted from buyers by various means, 3) as rents extracted from finite resources, principally land, and 4) as gains extracted from the public by externalities which socialize some costs while privatizing all gains; and by other such perloinings.

The economic function of profit is to flag industries doing well and needing additional resources to be brought into them until that profit is driven to zero and disappears. But that is a function of profit, not what it is.

A better read should be it is what is left over after all variable and fix costs are properly accounted for and paid. As an industry flag for entry, it should drop to zero in the perfectly competitive model as the optimal quantum of resources come into the industry. That is the economic analysis.

The reality, much more these days, is profit is significantly a theft category to hide what is improperly taken from others that does not drop to zero by natural means but remains and can grow as more is improperly taken from others.
Comments
Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ