Letharis comments on Publishing my initial model for hypercapitalism - Less Wrong

3 Post author: skilesare 20 April 2015 01:38PM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (78)

You are viewing a single comment's thread. Show more comments above.

Comment author: skilesare 20 April 2015 05:47:40PM 3 points [-]

I think it is semantics that depend on your assumptions:

http://www.investopedia.com/terms/e/economicrent.asp

Profits are economic rent are the same in a lot of instances. If all markets were perfect their would be neither profit nor economic rent. Can you think of a situation where profit is not economic rent?

Comment author: Letharis 22 April 2015 01:34:37AM 2 points [-]

When you talk about perfectly competitive markets having no profit, you're probably thinking of the term "economic profit". The sort of profit everyone usually thinks of is revenue minus cost, which is called accounting profit by economists so as to distinguish it from economic profit. Also economists are really bad at naming things. Economic profit is revenue-costs-opportunity costs.

In perfect competition, firms do make accounting profit, but they don't make economic profit.

Thanks for posting your model here and getting involved in the discussion. It's always good to be able to discuss these things publicly because I'm sure many people are learning a lot from it.

Comment author: skilesare 22 April 2015 02:29:07AM 3 points [-]

..and I'm all for profit. I think it is a great thing....I just also think there is an advantage to it being a time bound great thing. You made a profit! Awesome! Good for you! Now use it for the greater good or give it back(slowly...but still...)