- 08 Aug 2018 23:59
#14938177
Making a 'loss' is part of the 'risk' of normal business.
There are winners & losers in the 'profit' or 'loss' situation.
Consumers, whether business or personal, benefit from a company making a loss on product's.
People, as well as business are engaged in the 'supply', 'demand' & 'price mechanism' function of the market.
There is no god given right to making a profit, or loss, for that matter in the market.
Buying from business that constantly increase profits arising from the price mechanism, illustrates a lack of competition in a market.
Raising prices reduces demand, reducing prices increases demand(in theory).
Where a monopoly or cartel is operational(often with the connivance of government)the market is effectively short-circuited.
In the U.K, utility companies are effectively running a cartel, despite 'regulators' overseeing the markets, these 'regulators' are absolutely ineffective, because they are not allowed to do the job of 'regulating' the market 'anomalies' arising from intentionally weak 'regulation'.
As a result, the consumers are & have been fleeced by these companies since before the 2008 crash.
There is a political price to be paid for this corruption by politicians of the party in power.
When companies act in unison to rig the market, the effect is to cause employment to fall through those rising prices causing inflation.
Unless there is a general compensation for inflation, the effects are negative, but, even where there is monetary compensation, economically, the country loses any competitive edge that it may have had.
It is a feature of most economies of late to ignore the money supply contribution to general inflation through rising debt levels & this will come back to haunt the politicians arising from voter anger.
SolarCross wrote:If profit is evil, then making a loss is good, no?
Making a 'loss' is part of the 'risk' of normal business.
There are winners & losers in the 'profit' or 'loss' situation.
Consumers, whether business or personal, benefit from a company making a loss on product's.
People, as well as business are engaged in the 'supply', 'demand' & 'price mechanism' function of the market.
There is no god given right to making a profit, or loss, for that matter in the market.
Buying from business that constantly increase profits arising from the price mechanism, illustrates a lack of competition in a market.
Raising prices reduces demand, reducing prices increases demand(in theory).
Where a monopoly or cartel is operational(often with the connivance of government)the market is effectively short-circuited.
In the U.K, utility companies are effectively running a cartel, despite 'regulators' overseeing the markets, these 'regulators' are absolutely ineffective, because they are not allowed to do the job of 'regulating' the market 'anomalies' arising from intentionally weak 'regulation'.
As a result, the consumers are & have been fleeced by these companies since before the 2008 crash.
There is a political price to be paid for this corruption by politicians of the party in power.
When companies act in unison to rig the market, the effect is to cause employment to fall through those rising prices causing inflation.
Unless there is a general compensation for inflation, the effects are negative, but, even where there is monetary compensation, economically, the country loses any competitive edge that it may have had.
It is a feature of most economies of late to ignore the money supply contribution to general inflation through rising debt levels & this will come back to haunt the politicians arising from voter anger.
Andre PREVIN : "Your playing all the 'wrong' notes" .
Eric MORECOMBE ; "I'm playing all the 'right' notes,but, not necessarily in the 'right' order".
Eric MORECOMBE ; "I'm playing all the 'right' notes,but, not necessarily in the 'right' order".