Profit is the problem

March 9, 2007 in Economy & Business, Montana

by Jay Stevens 

A recent post on the Montana Chamber of Commerce’s blog irked me. I suppose it was inevitable; apparently I hate business.

…do some not recognize that businesses are created to be profitable? People create businesses because they believe the business will make them money. When a business plan is put together, the entrepreneur will look at tax structures, legal environment, government regulation, and dozen of other factors to determine the best way to have a profitable business. Many corporations have chosen to incorporate in Delaware for those reasons. There is absolutely nothing wrong with that.

Instead of harboring a hostile attitude towards business, I hope more legislators will try to figure out how we can make Montana competitive with other states. Only then can we get past the booms and busts of the past and achieve long-term economic growth.

Yes, it’s obvious that companies want to make a profit. That isn’t the issue.

But profit isn’t inherently good or inherently bad. Profit spurs innovation, economic growth, and investment. No one’s calling for the end to profit.

But if you imagine profit is a purely good force in this world, you’re sadly mistaken. When profit is put ahead of the environment, our communities, and the general health and well-being, that’s when the problems arise.

Like when a company knowingly contaminates the citizens of a town where its mine is located, contributing directly to hundreds of deaths.

Like when a company leverages its political clout to unfairly win a contract, which leads directly to Iraq vets laying in pools of their own urine.

Like when a company works with an authoritarian government to help crack down on democratic movements.

Actually, most of us expect big business to cheat, lie, steal, injure, maim, and kill for a profit. (It seems the bigger a company is, and the further the executives are from where they actually do business, the worse the company is.) Big business cares about the bottom line. You can’t trust ‘em further than you can spit.

Of course, I’m not saying all companies blindly chase profit. Maybe not even a majority. But there’s no doubt we need protection from big business; we need governmental regulation to ensure health and safety and fair business practices.

Only under the present system, it seems that business has the upper hand in ensuring that government represents their interests first, and their constituents a distant second. And too many “representatives” are busy collecting cash and doling out lucrative government contracts to their cronies.

Excuse us little guys — those of us without lobbying groups, those of us who count their campaign contribution in the dozens of dollars, not the thousands — excuse us if we harbor a little distrust for those that advocate for corporate America.

As for Montana’s future economic successes, all I can say is that tax breaks aren’t the only thing that make a good business climate. There’s the availability of qualified and well-educated workers, good schools, and transportation systems that any good business needs. All of which depend on government investment.

Personally, I think Montana should be less worried about pimping the state out to the DirectTVs of the world and think about how we can support the many and varied small and local business communities we already have.