Over the past several centuries, all manner of ethical and practical questions have been raised about the necessity of economic profit, its role in a society, and even whether it is necessary. Most truly thinking individuals [yes, a value judgment on my part] believe that, because there has never been a long-standing civilization that did not incorporate a market-based economic system in some form, some form of profit is also necessary. Beyond that, I have some doubts that any majority consensus exists.
From my own experience and research, however, I will make two observations: (1) Absolute maximization of profits results in a minimization of freedom. (2) Absolute minimization of profits does the same.
The second point is more obvious to most people because a market-based economy, for a practical purposes, ceases to exist if there is no profit at all, and even the egalitarian Scandinavian countries had to pull back from taxation levels that were so high that they effectively destroyed profits.
The first point is continually ignored or disputed by extreme free-market types, despite the plethora of evidence to the contrary. What isn’t obvious to most people, particularly politicians, regulators, and ultra-price conscious consumers is that maximization of both revenue and profits requires keeping wages and costs low, keeping inventory to those items in the highest demand, and eliminating competition. Politicians and regulators, at least at present, only look at low prices. The Amazon lawsuit against Apple and the Big Five publishers was a perfect example. The Department of Justice effectively stated that it didn’t care if Amazon’s practices gave it a ninety percent market share. All DOJ cared about was that short-term prices were lower. Well…now that Amazon won, just what happened to all those low prices? I certainly don’t see much difference to the consumer. Another example is the cable/satellite television market. Now that the major communications content providers have largely consolidated and are maximizing their profits, the diversity of content has dropped drastically… and prices have increased. Walmart is yet another example.
Or put in another context, freedom in any area isn’t free. Just as there’s a cost to political freedom, there’s also a cost to economic freedom of choice, and when low prices completely trump freedom of choice, not only does quality suffer for the goods most people can afford, but only the ultra-rich can afford truly high quality goods and services… and some goods and services aren’t available at any price… and in the long run, prices aren’t even lower.