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> Profit is not compensation for risk. Yes it is. The primary reason anyone takes on risk is because there is profit in it.
by EvenThisAcronym 6y ago
> Profit is not compensation for risk.
Yes it is. The primary reason anyone takes on risk is because there is profit in it.
- barrkel 6y agoYou have it backwards. You make it sound like we want people to take risks, and therefore we make it profitable. Risk is a limiting factor on chasing profit. The risk isn't the other side of a coin with profit. There are lots of different limiting factors on chasing profit; more supply may simply be unavailable, there may be barriers to entry, natural monopolies, regulation, etc. Risk (capital and human time) is one among many.