The Morality of Profit

More Shares More Profit

Posted in General by on Jun 23, 2010. 0 Comments

Both producers and consumers always maximize profits and utility respectively. They are trying to achieve in any way despite violating the norms of their society. Many people responded with margins and incentives to principle more is better than less. Thus, the influence of this paradigm can be felt today with the discovery of the crisis in our economy. Though inherently financial sector are already fluctuated, because the system relies on the profits of usury, and not because of real productivity (due to work, creativity and thinking).

However, the main point lies not in words but the paradigm to maximize lies in the face of this subject will benefit. If the people who collect a lot of resources to improve their own life course, then it can be called greedy, but if people can get more with a view of public benefit, it can be called a real profit. Islamic people believed if they share their wealthy or profit to shadaqah, their wealthy or profit will be doubled. Therefore, an important point in distinguishing between the reach and profit with a reasonable profit greedily grabbed is located on the impact of such externalities what happened from the economic behavior. When a positive externality is greater than the negative externalities we can state that the concept of profit is being sought by the individual is the real concept of profit. This can be measured by comparing the social marginal benefit with social marginal cost.

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