chapter  Chapter VI
19 Pages

Profit

ByRobert E. Wright, Richard Sylla

Mutual interest links together the various classes of the community. In principle, as stated, capitalists-producers enjoy the option of either devoting their resources to productive employment or of withdrawing them for other purposes. Manufacturers, as sellers, are thus led to cultivate the good-will of dealers and others who buy from them. ‘Deferring enjoyment,’ ‘superintending,’ and ‘incurring risk,’ then, are the three separate parts of the complex service of which net profit forms the remuneration. Assigning each of these its portion of that profit, the respective portions are, interest, wages of direction, and insurance. The law determining the rate of profit on fixed capitals is less speedy in its operation than the law determining the rate on floating capital. Under modern productive arrangements, producers obtain the commodities they require for personal use, not by directly producing them, but by producing others, which they sell for money that serves to procure what they want.