• Showroom7561@lemmy.ca
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    10 months ago

    I disagree, because profits can be used to upgrade equipment, reward employees, R&D, invest in expanding the business, etc.

    When used properly, profits keep businesses healthy and self-supporting without relying on shareholders, the government, or bad actors to get involved.

    But absurdly excess profits shouldn’t exist, and absurdly excessive wealth hoarding by individuals should never be allowed to happen.

    • queermunist she/her@lemmy.ml
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      10 months ago

      That’s not what profits are.

      Profits are the what is left over after upgrading equipment, paying employees, doing R&D, investing in expansion, and every other business expense. Profit is literally the money left after subtracting expenses from revenue. All profit is wealth hoarding, definitionally.

      Profit is theft and it always has been.

      • Sagifurius@lemm.ee
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        10 months ago

        How much is in your bank account? If it’s any substantial amount, you’re a hypocrite. If not, why aren’t you trying to fix that instead of whining.

          • Sagifurius@lemm.ee
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            10 months ago

            What a fucking surprise it is to me you don’t want to answer. I’m thinking you have money.

            • queermunist she/her@lemmy.ml
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              10 months ago

              You made it clear that the answer doesn’t matter?

              If I have money, then I can ignored because I am a hypocrite. If I’m poor, then I can be ignored because I’m a loser.

              If you must know, I’m a general operator in a factory. I weld stuff onto car parts and watch robots all day. It’s fine, I have enough money to pay off the loans for my car and trailer, but I damn well know that the company reports profits off of the surplus value created by my labor.

              I’ll probably never retire unless I take out the 9mm retirement package 🤷‍♀️

              • Sagifurius@lemm.ee
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                10 months ago

                The answer didn’t matter, because of the philosophy you espoused. You are the architect.

      • Showroom7561@lemmy.ca
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        10 months ago

        In business, you can’t predict what your expenses will be next year or in 10 years, so you need profit to act as a buffer. Some years, your revenue exceeds your expectations, and you profit that year.

        This could allow you to spend more money on those legitimate business expenses next year, or bank it for years when your expenses exceed your revenue.

        Even a non-profit has to have leftover to bank for the future, expand, etc.

        But consistently having billions in profit tells me that there’s a massive problem somewhere, and it’s more than likely as a result of wage theft or gouging customers.

        • queermunist she/her@lemmy.ml
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          10 months ago

          That’s not what profit is either! Funds that are set aside for future expenses or to act as a buffer are also just business expenses.

          Profit is purely the money that is left after all that shit. Profit is the money the business owner and/or shareholders take for themselves, after everything (investing, saving, wages, everything) has been subtracted. Profit is literally only the money they take for themselves.

          Your impression isn’t unique - most Americans don’t really understand what profit is. But like I said, profit is theft and it always has been.

          • Showroom7561@lemmy.ca
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            10 months ago

            Yeah, I guess that’s how modern corporations are using profits.

            I come from a small business and charity background, so salaries/wages/employee benefits would be considered a business expense. Profits would be banked and used to cover expenses in the future.

            • queermunist she/her@lemmy.ml
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              10 months ago

              It’s different on a small scale because the line between “business expenses” and “personal expenses” can sometimes get blurred. Though technically, if the money is earmarked for future use then it is definitely not profit. That’s a business expense.