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The Profit Motive ooThe prime function of profits is to allocate the resources and energies of the nation to accomplishments the public finds desirable. Profits must be equated to those needs. How much is enough? Whatever amount will balance reward against risk, and spur the production of those goods and services society requests."
Profit is basic to all societies and in the United States it has proved to be a unique instrument of progress, according to o'The Profit Motive," a booklet published today by the Du Pont ComPany.
One of a series on broad economic subjects, the booklet discusses the "frequently bafling and often misunderstood" profit system as "both the energizing agent of economic effort and the principal mechanism by which that effort is matched to the public's wishes."
A profusely illustrated 32-page booklet, ooThe Profit Motive" passes up the tables of statistics, financial records, and economic reviews. Intead, it discusses the effects of profits on the general interests of society.
"Whatever you call it, however you count it, ,it i. basic and indispensable to all societies, including Crusoe'g, and' Khrushchev'so" it notes. o'To the corporate manager it *& be,dollars in a bank; to the Soviet farm ministero the seed grain in a ware. house; to the native islander, the racks of dried fish stored asainst the future."
'oMany times, societies or fragments of societies have tried to divorce themselves from profit. Every attempt has failed," it said, noting that'oRussia today is as profit-minded as any country.,,
In the United States, the degree of dependence on prof,t is not always recognized and is, in fact, "very often ignored." Yet the system could not be changed "without tearing apart the whole fabric of society." W'ith its multitude of separate enterprises, this country has the most complicated economic structure ever assembled.
'oGiving order and direction to this structure, arranging its parts into a sensible pattern, is the search for profit, the one objective shared by all private business units."
Beyond this, "The quest of profit is inseparably linked to individual freedom. The opportunity to strive for economic gain is an extension of the nation's political philosophy, and as much a part of its heritage as the ballot and the Bill of Rights."
'oEvery economic system needs some regulatory device. There must be a way to determine what is made and when, how it is to be distributed and to whom, and what the terrps and amount of reimbursement are to be. In the free society,.;hat regulatory mechanism is the profit mofive o'There are as many listening posts as there are businessmen, The voice of the consumer is heard in the place where it will do the most good, in the stores and offices which wish to attract him as a customer . Thus it is that each of the thousands ol communities in the nation receives approximately as many gallons of milk, crates of lettuce, carloads of carpeting miles of electrical cord as it happens to want, without notable gluts or shortages, without benefit of a central clearinghouse, and with remarkable dispatch."
The open market, dedicated to profit, is "the only one parallel to the concept of liberty."
The American's quest for profrt is entirely voluntary, undertaken despite hazards; and there is a healthy individualisrr about it because each of the millions participating has different contributions to ofrer. The economy is predicated on the belief that both buyer and seller have something to gain, the booklet said.
C)ncc o Guflomcf, you orl olwcyr o friond ond wc oim lo rtrcngthcn rhor fricndrhlp thrcugh cvcly o3sociotion.
"The seller can hope to survive only when he can satisfy the nccds and €xpectations of the buyer . The buyer will have acccts to thc goo& and services of the seller only if there is some g"itr to be realized from tle sale."
Hense the "listless" profits of today create serious implications