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freefaler | 2 months ago

No profits == no business. Profits in very competitive markets might be low, but you still need them to survive. Walmart is under 6% of profit, but due to the enormous revenue it is still a lot.

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tehjoker|2 months ago

That’s not the question, it’s where do profits come from in the economic equation? What part of the value chain is adding but not subtracting its full cut?

freefaler|2 months ago

As Hayek proved the information in free markets is encoded by prices, so the value is up to the consenting parties. There is no "good" or "bad" or "improper" profit. If there is competition and willing parties that's where the profit will be. It will go down to something more or less sustainable for the market participants that are willing to work for that profit.