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kap
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Analysis of Issue
The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large.
Some people believe that the desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. This is a controversial debate in which many other people believe that the desire of corporations to maximize profits does not conflict with the general welfare of the nation. Though there are valid arguments to be said for both sides of the issue, a thorough anaylsis provides a convincing argument that the desire of corporations to maximize profits in fact supports the general welfare of the nation.
The primary goal of any for-profit company is to maximize its profits. This is a key factor in a capitalist economy such as that of our nation's. If a company is not seeking to maximize profit, it is not working efficiently. No healthy economy is stagnant. A healthy economy is one that is growing with innovations and advancements in technology and thus relies on companies to seek to be as efficient, innovative, and profitable as possible.
In order for a company to maximize profits, it must minimize its costs. For example, perhaps there are two suppliers to choose from, quality held constant, and a company does not choose the less expensive supplier. In this situation, the supplier has no incentive to make its processes more efficient to reduce its costs. On the other hand, if that company chooses the less expensive supplier, the losing supplier now has an incentive to increase its efficiencies to regain its customer base and stay in business. This incentive to increase efficiency spurs competition in which companies are increasingly more efficient. This in turn promotes the advancement of the economy.
On the other hand, in order for a company to maximizes its profits, it must also maximize its sales. A company can maximize its sales by providing the best product compared to its competitiors. This factor hinges on the quality of products. If a company provides the best product on the market, it will likely have the largest share of the market, prices considered. Competing companies must therefore improve the quality of their products to regain a share in the market. This competition fosters innovation and the growth of technology. For example, the unleashing of Apple's iPhone spurred various competing phones to be made with similar technology, plus added features in order to gain an advantage over the iPhone and regain market share. Since the initial releast of the iPhone, the technology available on one's phone has increased exponentially. This quick paced advancement is spurred by the desire for companies to be as profitable as possible by increasing their revenues throu!
gh higher quality products.
Opponents of this argument cite the recent recession attributed to the large Wall Street firms which took large risks in order to maximize profits. This argument hinges on the fact that the desire to maximize profits creates incentives that don't always benefit the general welfare. In an effort to maximize their profits, Wall Street firms took too large of risks resulting in a massive economic meltdown. However, without risk, there is no gain. It is clear that in this example, the risk was too large. But this example does not negate the benefits of corporations' drive for profits as stated earlier. This example only proves that perhaps more regulation is needed in regards to the methods in which a corporation tries to maximize profits. But clearly the benefits gained from the underlying drive for profit is what bolsters the economy to begin with.
In conclusion, the desire of corporations to maximize profits in not in conflict with the general welfare of the nation. Furthermore, it can be seen that this desire to maximize profits in fact supports the economy. A corporation's drive for profits provides incentives to increase efficiency as well as product quality. In addition, that same drive spurs innovation which leads to a growing economy. Though the methods in which companies attempt to maximize profits may have negative effects, these methods can be regulated to minimize the downsides. It is thus clear that the benefits of companies' desire to maximize profits greatly outweighs the possible downsides, which can be managed to reduce the frequency and gravity.
The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large.
Some people believe that the desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. This is a controversial debate in which many other people believe that the desire of corporations to maximize profits does not conflict with the general welfare of the nation. Though there are valid arguments to be said for both sides of the issue, a thorough anaylsis provides a convincing argument that the desire of corporations to maximize profits in fact supports the general welfare of the nation.
The primary goal of any for-profit company is to maximize its profits. This is a key factor in a capitalist economy such as that of our nation's. If a company is not seeking to maximize profit, it is not working efficiently. No healthy economy is stagnant. A healthy economy is one that is growing with innovations and advancements in technology and thus relies on companies to seek to be as efficient, innovative, and profitable as possible.
In order for a company to maximize profits, it must minimize its costs. For example, perhaps there are two suppliers to choose from, quality held constant, and a company does not choose the less expensive supplier. In this situation, the supplier has no incentive to make its processes more efficient to reduce its costs. On the other hand, if that company chooses the less expensive supplier, the losing supplier now has an incentive to increase its efficiencies to regain its customer base and stay in business. This incentive to increase efficiency spurs competition in which companies are increasingly more efficient. This in turn promotes the advancement of the economy.
On the other hand, in order for a company to maximizes its profits, it must also maximize its sales. A company can maximize its sales by providing the best product compared to its competitiors. This factor hinges on the quality of products. If a company provides the best product on the market, it will likely have the largest share of the market, prices considered. Competing companies must therefore improve the quality of their products to regain a share in the market. This competition fosters innovation and the growth of technology. For example, the unleashing of Apple's iPhone spurred various competing phones to be made with similar technology, plus added features in order to gain an advantage over the iPhone and regain market share. Since the initial releast of the iPhone, the technology available on one's phone has increased exponentially. This quick paced advancement is spurred by the desire for companies to be as profitable as possible by increasing their revenues throu!
gh higher quality products.
Opponents of this argument cite the recent recession attributed to the large Wall Street firms which took large risks in order to maximize profits. This argument hinges on the fact that the desire to maximize profits creates incentives that don't always benefit the general welfare. In an effort to maximize their profits, Wall Street firms took too large of risks resulting in a massive economic meltdown. However, without risk, there is no gain. It is clear that in this example, the risk was too large. But this example does not negate the benefits of corporations' drive for profits as stated earlier. This example only proves that perhaps more regulation is needed in regards to the methods in which a corporation tries to maximize profits. But clearly the benefits gained from the underlying drive for profit is what bolsters the economy to begin with.
In conclusion, the desire of corporations to maximize profits in not in conflict with the general welfare of the nation. Furthermore, it can be seen that this desire to maximize profits in fact supports the economy. A corporation's drive for profits provides incentives to increase efficiency as well as product quality. In addition, that same drive spurs innovation which leads to a growing economy. Though the methods in which companies attempt to maximize profits may have negative effects, these methods can be regulated to minimize the downsides. It is thus clear that the benefits of companies' desire to maximize profits greatly outweighs the possible downsides, which can be managed to reduce the frequency and gravity.
