Posted by
John Caile on Wednesday, September 09, 2009 1:12:15 PM
Have you noticed how the word "profit" has become almost a dirty word? And not just in your local socialist coffee shops - in movies, news and entertainment TV shows there appears to be a consensus that "profit" is somehow a negative thing. News anchors drip with disdain when describing private sector corporations - often announcing "record profits" as if they were something requiring an apology. Characters in movies scowl when discussing those whose "only concern is profits" (they practically spit the word "profits").
Meanwhile, these same talking heads fawn endlessly over any organization described as a "non-profit" - the contrast is quite stunning. Whether interviewing a "community organizer" or the CEO of some charitable fund, the message is clear - profit is evil, or at least, well, unseemly.
All this is rather odd when you consider that profit, or more precisely, the competitive pursuit of profits, has been the source of virtually every major advancement in improving the human condition.
As one astute capitalist quipped: "From the telephone to the automobile, from the airplane to polio vaccine - it is the perfectly natural, and noble, desire to profit from the fruits of one's labors that has driven all human progress. It is no coincidence that I've never met a social worker who had a single patent to their name."
The healthcare debate is a perfect example of this dichotomy - the supporters of "universal" (read: taxpayer-funded) healthcare constantly berate EVERY enterprise that exists to make a profit. Insurance companies. HMO's. Drug Companies. Even doctors and nurses (unless they work for a "non-profit" that is).
But history has shown clearly that the pursuit of profit is the most effective motivator in the production of quality goods and services at competitive prices. Conversely, you need not look very far to find examples of what happens when there is no profit motive, and as a result, no competition - been to the DMV lately? Or
look at the Detroit public school system, which graduates only 28% of their high
school students, while spending TWICE as much per student as the average private school. Any for-profit private school that performed that poorly
would be out of business in short order.
And contrary to the anti-business view that most socialists hold, the profit motive is even good for the employees - the most profitable companies in America are almost invariably described as among the best places to work. Savvy executives learned long ago that happy, well-treated employees produce happy, long term customers, and resulting higher profits. Oh, sure, you can realize a short term profit gain by short-changing your employees, but eventually the result will be that your best employees will leave, often going to your competitors. And your customers will not be far behind.
But the proponents of a government run approach continue their attack on the very free enterprise, and yes, for-profit system that has given us the finest medical care in history - and the envy of the world. When they get sick, no one goes to Canada or Great Britain, let alone Cuba. They come here.
And please spare me the canard about "government funded research" - check the
books and you will find that most of the programs that actually produce the real break-through innovation got their funding from
for-profit entities. Why? A scientist working on a government grant can collect checks for years without producing ANYTHING. Not so in the private sector - as Dan Akroyd's character in "Ghost Busters" so wonderfully summarized: "I've worked in the private sector - they demand RESULTS."
No, without the possibility of profit, and the competitive environment that a truly free-enterprise system provides, there would be no miracle drugs, no MRI's, no CAT scan machines, no pacemakers, no dialysis machines - in short, virtually no medical progress at all.
Profit produces innovation.
Profit rewards excellence.
Profit punishes mediocrity.
Profit improves value.
Profit is good.