| Lesson 9: Too much profit. |
- For each person, for each type of business, there is a minimum profit margin. That is the least amount
that you are willing to make if you spend what it takes to do that business:
1. the time and money you spend to get a degree.
2. the time, money, stress and health you risk to start a business or run a business. (The heart bypass is
the corporate battle scar).
3. the money you spend to buy stock in a business.
In any given industry, price competition forces each surviving participant down to that minimum. The
exceptions are the businesses where government inhibits competition, such as inner city taxi services and
other overly-licensed trades, cable t.v. and other utilities, and certain other government-favored
businesses such as Fannie Mae and several Blue Cross companies. For the rest of us, there is no such
thing as too much profit.
Next Lesson: Price Gouging and Price Control