Clear and present danger the profit motive – is it time to retire the roi impact of electricity in the 1920s

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Estimate of the time that Humanity will go extinct or civilization will collapse. pictures electricity pylons The HUMANITY DOOMSDAY CLOCK moves forward to 2125 due to US President trump’s abandonment of climate change goals. Apologies to Bulletin of the Atomic Scientists for using the name. PLEASE QUOTE, COPY and LINK While this material is copyrighted, you are hereby granted permission and encouraged to copy and paste any excerpt and/or complete statement from any entry on this blog into any form you choose. In return, please provide explicit credit to this source and a link or URL to the publication. Email links to mckeever.mp@gmail.com You may also wish to read and quote from these groundbreaking essays on economic topics with the same permission outlined above The Jobs Theory of Growth [http://www.mkeever.com/apply.html] Moral Economics [http://www.mkeever.com/moral.html] Balanced Trade [http://www.mkeever.com/essay.html] There Are Alternatives to Free Market Capitalism [http://www.mkeever.com/taa.html] Specific Country Economic Policy Analyses – More Than 50 Countries from Argentina to Yemen [http://www.mkeever.com]

Unfortunately, the idea of ‘efficiency’ does not include benefits to any people or organizations outside of the narrowly defined business. It is possible for a business to have a high ROI while making the overall society poorer. electricity production in india For example, making and selling cars can be a profitable business when only the direct costs paid by the company are considered. But, cars require roads and the car companies do not pay for the roads. This is called an ‘external’ cost, or a cost created by the company that the company does not pay. Instead, consumers pay the cost through taxes or tolls, which then benefit the company by enabling it to pass onto the public costs created by their product.

Economies where the profit motive is the dominant model frequently fail to provide adequate real benefits to the general population; some benefits do not lend themselves to the profit motive. Firms have no incentive to provide for any good or service from which they do not make a profit. electricity lab activities Public goods like national defense and public parks don’t have the possibility of generating enough revenue to create profits with a sufficient ROI to attract private capital. Instead there is a drive toward higher and higher ROI at the expense of the greater population.

But, when a society fails to provide funding for public services through tax revenue, the central government frequently chooses to borrow money to fund the deficit. world j gastrointest surg impact factor Seemingly several governments have reached the limit of funding public deficits through borrowing in the private capital markets. The lender of last resort, the International Monetary Fund [IMF], does require that governments wishing to finance their deficit raise taxes and lower expenditures to balance their budget. To date, the United States of America has avoided that exercise since private lenders seem happy to lend the US sufficient funds at low interest rates to fund our deficit. This may end at some future date; then the US would likely face the same IMF mandates we have avoided so far.

This is the Public Utility Model where a for profit company provides an essential product or service which requires a significant investment to deliver efficiently. The company is granted a monopoly but must submit to a publicly elected board with power to set its prices and operational methods. In California, the PUC regulates electricity and natural gas distribution.

Many countries use the State model where a government organization provides a good or service. a level physics electricity questions and answers Sometimes this model creates problems when the company fails to make enough revenue and the government covers its losses. A case can be made that the subsidies are in fact an investment into a social goal that the organization provides for the country.

Many successful organizations operate on a non-profit model, where the goal is to combine maximization of one or more social goals with enough revenue to cover costs. There are, for example, many non-profit credit unions which provide the same services as for profit banks but without the excessive concentration of money and power which commercial banks accumulate. [See my kindle book on BANK SLUSH FUNDS here: https://www.amazon.com/gp/product/B07B6RYQ7C/ref=dbs_a_def_rwt_bibl_vppi_i6]