-15 One of the problems with capitalism is business owners are forced to earn a profit. Governments don’t have that restriction so government should be able to deliver goods and services at a lower prices to the consumer. Amirite?

by Anonymous 11 years ago

Unless you know anything at all about economics, in which case you would understand prices work to effectively ration everything. Prices are based off of supply and demand. Besides, profit is what motivates companies to deliver a good product. Ever left the DMV with a smile on your face?

by Anonymous 11 years ago

Key word //should//. Government //should// be able to, does mean they do.

by Anonymous 11 years ago

Then why did you list profits as a problem?

by Anonymous 11 years ago

COG+profits > COG. If you don't need profits, all else being equal, the price //should// be lower.

by Anonymous 11 years ago

No. Governments most defiantly should NOT determine the prices and quantities of items. Socialism may look good on paper but fails dramatically in the real world where capitalism prevails.

by Anonymous 11 years ago

I agree. I meant, mathematically, they "should" be able to lower the cost of goods because they operate in the red. The consumer sets the price (as panther pointed out above). All I implied was that profit //increases// cost of production. It does. A non-profit agent //ought// to be able to lower the cost. That's the problem with capitalism, profit inflates production costs. Take out the profit and cost "should" go down.

by Anonymous 11 years ago

Profit does not affect production cost at all. It determines a sellers "willingness to sell." It provides incentive.

by Anonymous 11 years ago

You are right again, I stand corrected. Try this: (Selling price) > (selling price - profit). Can we at least get to that level of agreement?

by Anonymous 11 years ago

Not necessarily. Because profits aren't a given. Prices are still determined by supply and demand. That's why price controls never work. They lead to shortages and surpluses.

by Anonymous 11 years ago