Profit is not primarily a benchmark for technological effectiveness. Some have suggested that the market’s unobserved hand drives businesses towards the most effective resource allocation by driving those out of business who do not act on its pricing signals. Since resources are fundamentally scarce, the market offers the best—if not the only—mechanism for preventing waste that would worsen scarcity. However, the efficiency metric employed here is not just inherent in capitalism but also a part of it. An organization’s efficiency is determined by how lucrative it is.
Its revenue so outweighs its expense. However, raising prices to exceed expenses may provide the impression that profits are being earned in the market. However, company owners cannot merely raise their rates at will because doing so might result in them losing customers to other companies. In any scenario, as long as businesses supply each other with the inputs they need, increasing one company’s pricing would increase another’s cost, with the accompanying reciprocal losses and gains eventually balancing each other out.
From a businessman’s perspective, I am not satisfied with the current domination of capitalism, and I support socialistic perspectives. Socialism is predicated on the notion that a more egalitarian society results from collective or public ownership of resources and manufacturing equipment. This implies that a small group of wealthy capitalists control power in capitalist society at the cost of the working class. However, it is maintained that in a socialist economy, everybody is free since everybody controls production methods. Therefore, I believe that the purpose of business in modern society is to contribute to its flourishing and equity while eliminating scarcity and giving privilege to a limited group of people with massive financial resources.
There is no doubt that, especially in advanced capitalist economies, much over half of the whole labor force is engaged in one or more forms of socially worthless production. Estimates differ on the percentage of total labor and resources allocated to systemic requirements. This amounts to a vast waste of human labor and resources that, if used to produce goods and services that benefit society, might end scarcity insofar as meeting basic requirements is concerned. Being mindful of these issues, here is the impact that I hope to have as a business professional: I strive to eliminate scarcity necessitates to stimulate a shift from capitalism to socialism, from production for profit to manufacturing for use.