Thursday, December 1, 2011

Dog Poop Parable Explained

The Dog Poop parable is an apologetic analogy justifying "excessive" profits. It only examines one facet of the profit principle; there are others elements that contribute to profits.

I often hear people say "So-and-so or such-and-such company makes TOO much money," or "What do they care? They're making a profit! It doesn't hurt them!" The Dog Poop parable reminds us that it's not enough to be recompensed for an inconvenience--the recompense must more than justify the inconvenience. A penny for flicking a crumb off a table justifies the inconvenience. A penny for sticking one's finger in excrement won't cut it.

It is an inconvenience to have to open up a store, stock it with goods, train employees, and sell to the public. He who undertakes such a venture runs the RISK that ALL THAT COULD FAIL leaving him PENNILESS AND ALONE. He deserves recompense that more than justifies the risk and inconvenience to which he subjected himself. This is one reason why ownership makes more than labor--where is the greater risk? Where is the greatest inconvenience?

While we're at it, I'll just say that I imagine it's even more inconvenient to have to be a multi-billion-dollar corporation and have the worries of a single store compounded by a couple hundred or thousand stores, plus concerns over boards of directors, hoards of vice presidents, and stockholders. Just saying.

Who is it that decides what amount of recompense more than justifies the inconvenience? Why, he who sticks his finger in the dog poop, of course. Anything else would be "unfair". And we all know how economic unfairness is detested in our time. Heaven forbid we should contribute to such injustice.

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