Wednesday, September 9, 2009
What is business?
Personally, I believe first and foremost that a business is bound to its literal definition, that being a profit seeking industry or enterprise. The most elementary and predominant goal of a business should be fundamentally to make money. Those in charge of operating the industry need to earn a living. So earning a profit is a necessity for the time and effort employed in producing a commodity, whether good or service, that can exhibit a use value for the public, but more importantly, an exchange value for the manufacturer in Marx’s M-C-M cycle. Marx seems to agree with this. Being in a profitless M-C-M cycle is redundant. In order for this cycle to be effective, money must be invested in a commodity or bundle of commodities that can ultimately be transformed into a new commodity, with a use value for the public, that can be sold for more than the commodities used to manufacture it. “But industrial capital too is money which has been changed into commodities, and reconverted into more money by the sale of these commodities” (Marx 256). If you purchase the ingredients and produce steel, you can sell it for more than the components used in it. “The ceaseless augmentation of value, which the miser seeks to attain by saving his money from circulation, is achieved by the more acute capitalist by means of throwing his money again and again into circulation” (255). In other words, what Marx is stating here is that if companies invest money into commodities to earn a profit upon resale, more money can be circulated and gained, benefiting the industries and the economy. Ultimately, I think my claim that businesses should be profit seeking is accurate, and I think that this is important because, as Marx said, it is the passion and drive for enrichment that fuel the markets and can benefit the businesses that are part of the market.
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In this response, the argument that you are making is that business is solely based upon profit making. You state the most significant and recognizable goal of business is to make money. Points made in “The Story of Stuff” appears to support your argument. For instance, the video points out that businesses extract materials to produce commodities, which they then distribute to consumers in order to make a profit. She also states that businesses gain money at a higher rate than at which they pay for resources through means of exploitation. I agree with your claim that business is for receiving a profit, though I feel that you overlooked that business is also a means of helping improve the difficulties of life. New inventions/commodities help people with their daily lives. I would of liked to have found out whether you thought this profit seeking mentality of business was positive or negative. I also would like to know if u feel that there is a better way to use business if you felt the process was negative. You made a pretty clear point though and it showed that you understood Marx’s beliefs. You were very detailed and you also broadened my understanding of Marx’s opinions.
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