Reference Quote
ShuffleSimilar Quotes
Quote search results. More quotes will automatically load as you scroll down, or you can use the load more buttons.
The should not be confused with the profit system. By the profit system, of course, we mean the institution of private property in capital goods and the free private enterprise that goes along with it. There is no reason why the "profit motive" should be necessarily connected with the profit system. In a profit system there is nothing to prevent anyone acting on altruistic lines; there is no law that says a businessman must maximize his profits. If a businessman chose to operate with outputs, prices, and wages that yielded him a smaller profit than the maximum, but which he felt were socially more desirable, there is nothing in the profit system that would prevent him from doing this. Nothing in the profit system would prevent the most ardent liberal from refusing an increase in wages, or from accepting an unpleasant and poorly paid job. At the other extreme, there is nothing in a communist system that would do away with the profit motive, or the "advantage motive."
Webster defines profit as excess of value over cost, and gain as that which is obtained as an advantage. I have availed of this well-expressed though delicate distinction between the two terms, to coin a name for the system herein described, whereby to differentiate it from profit-sharing as ordinarily understood and practised. The right solution of this problem will manifestly consist in allotting to each member of the organization an interest in that portion of the profit fund which is or may be affected by his individual efforts or skill, and in protecting this interest against diminution resulting from the errors of others or other extraneous causes not under his control. Such a solution, while not simple, is attainable under many circumstances, and attainable by methods which experience has shown to be both practical and successful.
PREMIUM FEATURE
Advanced Search Filters
Filter search results by source, date, and more with our premium search tools.
Loading more quotes...
Loading...