Is Profit Really Immoral? | IEA Podcast Clips
Delve into the contentious topic of profiteering with Matthew Lesh, the Public Policy & Communications Director at IEA, and Economics Fellow Julian Jessop in this IEA Podcast clip.
In this clip, Lesh and Jessop explore the public outrage surrounding perceived profiteering, using Tesco's recent £2.3 billion pretax profit surge as a focal point.
Lesh and Jessop dissect allegations of profiteering, revealing the intricacies of profit margins and the competitive landscape across industries. They delve into the essential role of profit as a driver of innovation and market equilibrium, challenging common misconceptions surrounding corporate earnings. Gain invaluable insights into the dynamics of profiteering, as Lesh and Jessop navigate its implications for businesses and consumers alike.
Full video: • Debunking Myths: Tesco...
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So a low supply to demand factor increases prices, which (balances out) motivates a business to produce more due to an increased gross profit margin and "makes sure those people who perhaps don't need that good or service as much as other people do, decide to spend their money on something else instead". Of course! A good or service being more expensive means that those who actually need it more will benefit, it is common knowledge that need is determined by disposable income. A millionaire would see a medium whole chicken at tescos had suddenly risen in cost to £10, think to himself "I don't really need this, I'll spend my money elsewhere". Along comes your working class family man on a 35k wage in glee "praise thee invisible hand of the market, profit margins have chased away those who do not need but want."