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View Full Version : Surplus and seeking new markets?



Hermes
24th June 2012, 18:53
Sorry for another obvious question, but something I'm having trouble with.

When capitalists go to seek new markets for their goods because they have a surplus, it isn't a surplus of goods that are needed by the country they're usually operating from, right? Or else they wouldn't be searching for new markets?

What I'm wondering is why it's more profitable for capitalists to operate on goods that aren't wanted/needed as opposed to those that are. Theoretically, couldn't you make more of a profit by actually producing what people need, or would the problem be that they're unable to afford it?

Sorry again for the probably obvious question.

Blake's Baby
25th June 2012, 01:05
Capitalism doesn't care what it produces, it just cares about the profit. If it can persuade you to pay $10 for something you don't need that costs $1, that's much better than you paying $3 for something you do need that costs 60cents, or soemthing that you do need that costs $90 and they can't sell at all because you can't afford it.

That's the start of it... there's more, but not tonight.