[p2p-research] Profit Measures the Payer's lack of Physical Source Ownership

[Patrick Anderson]

Ryan Lanham  wrote:
> The Marxian stuff of owning means of production is meaningless.

Are you saying ownership makes no impact on the Price a consumer pays?

What is cheaper:
A bunch of friends buy a large van to ride to work together.
A bunch of friends rent a large van to ride to work together.

If there is no difference between the Costs of Owning and the Price of
Renting, then all rental agencies would be reporting zero Profits,
right?  I'm sure that is untrue.

When you own an apple tree, you get apples at exactly the Cost of production.

When you don't own the tree but want the fruit, you can buy them from
another owner, but he will likely charge you a Price that is more than
it really Cost to produce.  That difference is Profit.



> It is the capacity to generate profits that is all important.

No, the capacity to generate *products* is all that is important.

Profit does not occur when a consumer owns the Means (or Physical
Sources) of that product.



> Prices are set by demand and supply...not by production costs.

Prices are affected by Costs because the Owners must recover at least
what it Cost to produce, or they won't even "break even".

The difference between Consumer Prices and Owner Costs is Profit.

Profit increases as Consumer dependence increases, and decrease as
that dependence decreases.