I hope that the arguments given in the previous post leave no doubt that merchant (trading) activity is a PROCESS of SERVICE PROVIDING stretched over time, and the net profit of a trading company, which remains from the difference between the selling price and the purchase price of a given commodity, i.e. from the trading margin, after covering all the costs of the company’s activities and after paying the taxes due, is the REWARD of the owner of this company for these SERVICES and for the RISK incurred.
THE THESIS THAT MERCHANTS LIVE AND GET RICH FROM EXPLOITATION IS AS SCIENTIFIC AS THE ONE THAT THE EARTH IS FLAT.
It is also worth adding that all the arguments raised in the first post on this blog regarding the apparent conflict of interest of the merchant and his customers remain valid. Isn’t it in our best interest to be able to buy 50 grams of pepper at the nearest retailer when we need it, instead of ordering a whole bag from China, Vietnam or Brazil? And if it stings someone’s heart that a merchant sells his goods more expensively than he buys them, then let him start doing the opposite himself.
Yes, I know that some will conclude that this is pure demagoguery, because, after all, their point is not that merchants are selling AT ALL, but that they are SELLING THAT MUCH MORE. However, I reiterate the suggestion, LET THEM TRY to earn as Marx suggested, by simply exchanging 100 pounds sterling for 110 pounds, AND MEET TODAY next year with the aim of exchanging views!
Coming soon to the next topic.