Wolff Responds: A Critique of Profit

In this Wolff Responds, Prof. Wolff explains what profits are and how they are used in our society. He asserts that revenues generated, i.e. profits, are not used in a manner that is in the best interest of the majority of people, but instead to amass wealth for a small minority. Profits, Wolff argues, are only important to employers. Treating profits as a religion is short-changing the majority of people, the workers.

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“Hennelly brilliantly analyzes our capitalist crises and how individuals cope with them, tragically but often heroically. He helps us draw inspiration and realistic hope from how courageous Americans are facing and fixing a stuck nation.”
- Richard D. Wolff
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[evanstrong]

Wage is an expense to the owners. An employee's livelihood is then an inconvenience.

[cshubs]

I worked at Eli Lilly a long time ago as a contract editor. My contract was cut by a year, just before Xmas, because the company didn't make AS MUCH profit as they expected that last quarter. They still made hundreds of millions, just not the expected number.

[nthperson]

As a college freshman over five decades ago, one course I took was titled "Introduction of Management." The first day of the course, our professor asked the question: "What is the purpose of a business?" My fellow students raised their hands, ready with the answer: "To make a profit." Our professor gave the class a knowing look. I then raised my hand ready with a different answer, for I had read the first few chapters of our text prior to the first day of class. I happened to recall what the author of our text wrote: "The purpose of a business is to produce goods or services that others need and desire. If the business does this, the business will, then, generate a profit."

Now, the issues raised here by Professor Wolff are important for us as we evaluate our systems of law governing the organization and operation of business enterprises. The issues have a fundamentally moral and ethical component. This connection is fundamentally detached by the laws that allow for the corporate form of ownership and the treatment of shares of stock as an investment rather than evidence of ownership and the responsibilities of ownership.

[eziodeldegan]

So, therefore, capitalism is not congruent with democracy because capitalism is primarily about making profits.. thank you for pointing this out prof Wolff...

[nancylarson]

You're great!. Thanks again for getting at it with the corporate wolves.

[Catalyst]

Spot on as always Professor. Thank you for another quality lesson

[brandonfoster]

Profit is employer excuse along with payroll taxes not to increase wages and benefits. Some employers will on purpose avoid profit for tax benefits but still get paid same income other ways.

[BBBarua]

Workers, Consumers, and Government have to exercise their power in the "Market". When businesses and corporations are the only entity exercising their power in the market, people get screwed with price hikes and fewer goods in the packages.

[singhnitesh]

Capitalism and democracy in a single system is not sustainable

[hhheee]

We need to demand that we be able to establish more worker co ops. Especially when a business wants to leave to a country where it's cheaper labor. The employees should take it over and tell em good riddance.

[joandelur]

the more simple, the most awesome the Proff lead his explanations about a big topic as profits/revenues and the key positions its represents on the topic. Thank you so much Mr Wolff, you always taught us the better way to argue against Capitalism. Not price.

[joethethunder]

Profit in spanish is beneficio. Beneficio in English is benefit. Also ganancia, ganancia in English means earnings. Profit really means boti'n, botin in english is loot.

[AB-svrf]

This is really a very basic and simplistic review. Only a professor could up with this.

[bluelithium]

Profits are one thing. Outsize greed is another.

[billjones]

no profit, no workers, no raw materials, no business, it really is that simple

[NotAPacifist]

professed capitalists should read the work of its esteemed architect, Adam Smith, Wealth of Nations. one need only read his descriptions of Perfect Competition and Economic Profit to see how little our economy resembles those ideals.

, legislation in favor of the worker is “always just and equitable, ” land should be distributed widely and evenly, inheritance laws should partition fortunes, taxation can be high if it is equitable, and the science of the legislator is necessary...

[majdavojnikovic]

What is the diference between feudalism and capitalism? Not much actually.
It is not an owner of the land (and souls on that land) but the owner of the capital ( and debts that souls carry)
The division is the same, and debts are the new chain for the masses. It is the same song, just by new performers and instruments.


But, frankly, through this pandemic, I realised that masses are most likely not ready for the responsibilities that come with freedom, nor for true democracy and socialism, which both request high(er) empathy and solidarity between people.
Maybe these kids will escape. I place my hope on them. If we as spieces survive, first :)

[kburke]

Again, a great video professor. Ellen Meiksins Wood has a great take on democracy and capitalism. She explains that capitalism is different from other social forms because it creates a separation between the 'economic' and 'political' spheres. This is evident in the fact that in other systems, political power enabled lords/masters etc. to extract surplus labour from producers. In capitalism, a monopoly on political power is not required to extract surplus labour. Therefore, the process of surplus extraction takes places in a purely 'economic' setting. But if production in a society is social (as in capitalism), but appropriation remains private, then there is an antagonism between the majority and the minority. The important thing is that with this separation, democracy has been confined to a political sphere that leaves untouched the new form of exploitation created by capitalism. Political rights do not absolve individuals of economic exploitation.

[StaticTeaz]

John Mackie loves profit. He is quoted in a NYT article lauding its virtues, a completely one sided, deaf perspective.

[jayjames]

This is correct, owners and snr workers should get 5 x what the lowest workers get, and the profit should be divided accordingly, otherwise it's all just so someone else can fly themselves over the atmosphere burning 2 million x the fuel of a family car.