In his terrific book, Harry Browne discussed the nature of Profit as being:
one situation with another.”
The natural example would be that, in a free-market based exchange, both parties profit because they are each — by choice — exchanging something they value less for something they value more.
However, Profit does not pertain only to business but to any area of life. Let’s say we forgo the immediate pleasure of a delicious piece of cake because we believe we’ll look and feel better as a result. We have exchanged instant gratification for long-term gain, which we value more. That’s a non-monetary example of the “profit motive.”
Harry explained that we all make decisions based on what we “believe” will make us happier than our current situation. The decision is determined by what we value more and within the context of the limited number of resources and options available to us in any decision.
WOW — when looking at it that way, pretty much every human action and interaction makes sense, doesn’t it?
What are some other examples that come to mind? Feel free to share.