Wednesday, October 1, 2008

Production for Profit

The motive for production under capitalism is making a profit. In order for goods to be manufactured or services to be provided, they must result in a reasonable amount of profit, otherwise they won’t be produced. Even ‘loss leaders’ serve the goal of profit, by enticing customers into a shop.

In contrast, socialism will be based on production for use. The whole issue of profit will be meaningless in a socialist society, with no money or buying and selling. Items will be made because they are useful, because they satisfy people’s needs for food, housing, transport, clothes, leisure interests, or whatever.

Read the rest of the article here.

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