Question

. In capitalism, most businesses have a profit motive. Describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society. Then, explain whether you think profit motive is a good thing or a bad thing for society.

Answer 1

Hehe is this your assignment problem?
can't give you the full answer, you know.

Taking the first part - why businesses with a profit motive may be helpful for society - some ideas/hints
* Those businesses with a profit motive are more likely to invest in their stock of equipment, their people, and try to develop new products for new markets. They will be rewarded. Employment will be generated. Better products. Better standard of living.
* Those businesses with a profit motive are more likely to attact our Savings. My Savings will be put to productive use and will earn a return on the investment. Which is good for savers. Which helps pay for their retirements. Without the profit motive - why save (invest) ?
* The profit motive is a "signal" which, over time, will allocate capital (savings / investments) to the most productive areas (*ignoring market failures for now), increasing overall standards of living. Without the profit motive, capital and labour is allocated in some other arbitrary way (ask the Central Planning Commission in Moscow), which is sub-optimal and leads to economic stagnation.

just some ideas ;-) now go do some reading.