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Comment Profit vs. Production (Score 4, Interesting) 2071

There are, in fact, two models of business. In one model, a company generates profits to execute business. In the other, the company executes business to generate profits. The owners of the company choose which model they follow.

For example, many of the best book publishers from the first half of the last century made money to execute business. Victor Gollancz published the Lord Peter Wimsey books to make the money with which he underwrote his Left Book Club. In this country, Random House and Scribners were publishers that used the profits from their bestsellers to underwrite books that they wanted to published - some of which have become the classics of our literature. Nowadays, of course, those once-superb houses have all been gobbled up by corporations, and it's all astrology, diets, and self-help.

Obviously, it's easier for a privately held company to re-invest its profits in doing work that the owners feel should be done; but it's not impossible for a corporation to have a conscience - or a sliver of a conscience, in any case. The much-maligned automakers, I think, do have a commitment to building high-quality vehicles, however, bad they are at it; if they didn't, they would get out of the business altogether. And there are others as well. Perhaps fewer now than there once were; but they're there.

As for Microsoft, I find it hard to believe that its management gives a rat's ass about software; if they did, they wouldn't ship the crap that they do. But I'm not a billionaire, so what the hell do I know?

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