The Economic Impact of the Profit Motive and Alternative Frameworks
DOI:
https://doi.org/10.58445/rars.3304Keywords:
Profit Motive, Capitalism, Economic Systems, PolicyAbstract
Profit has long been viewed as the central driver of productivity, innovation, and economic growth. Yet, its dominance also raises questions about social welfare and ethical responsibility. This paper examines the economic impact of the profit motive and contrasts it with alternative models, including state-led and non-profit frameworks. Drawing on examples such as Pfizer’s COVID-19 vaccine, Henry Ford’s entrepreneurial philosophy, and Germany’s transition to shareholder capitalism, the essay explores how profit incentives foster innovation while simultaneously generating inequality and externalities. It further evaluates the corrective roles of governments and mission-driven institutions in mitigating market failures. The analysis concludes that sustainable and inclusive growth arises not from any single ownership model, but from a balanced system in which profit-driven enterprise operates alongside effective regulation and social intervention.
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