Home                                                                             profits by Waddill Catchings, William Trufant Foster

'Nowhere,' says J. M. Keynes, 'do conservative notions consider themselves more in place than in currency; yet nowhere is the need of innovation more urgent. One is often warned that a scientific treatment of currency questions is impossible because the banking world is intellectually incapable of understanding its own problems. If this is true, the order of society, which they stand for, will decay. But I do not believe it. What we have lacked is a clear analysis of the real facts, rather than ability to understand an analysis already given.'

CONTENTS We live in a Money and Profit Economy Out of Money and Profits comes the Economic Problem Profits the Heart of Industrial Life Without the Profit Motive, Other Motives can hardly function Continuous Employment depends on Profits Various Kinds of Income Profit the Difference between Two Variables Various Sources of Profits Profits and Losses Result from Risks Business Risks are not Gambling Risks Profits result from Wise Choice of Risks Risks are Due Mainly to Consumers' Freedom of Choice Consumers' Freedom of Choice involves Wastes of Competition Reducing Risks Tends to Reduce Profits and Losses Reducing Fluctuations in the Price-Level Tends to Reduce Profits and Losses Competition Reduces Profits and Losses The Amount and Distribution Of Profits - Statistical Basis is Essential Profits are Sometimes Losses Profits Vary Widely Profits from doing and Profits from owning Buyers Determine Prices Relative Costs, not Absolute Costs, determine Profits Prices Determine Who Gets the Goods Sellers take as much as Buyers will pay Profits Determine Who Produces The Goods One Function of Profit is the Elimination of the Unfit Large Profits Are Sometimes Unavoidable Government Control of Prices And Profits is Impracticable Money and Profits in Relation To Consumption Adequate Income for Consumers The Chief Need The Universal Fear of a Deficiency Of Consumer Purchasing Power The Circuit Flow of Money and The Annual Equation Corporate Income and the Annual Equation