Political Economy Part 3: Where Do Profits Come From?

Common Sense Paper No. 13

We continue our mental models on political economy with Part 3 (Where Do Profits Come From?) in this essay. If you want to circle back to Part 1 (Capitalism), do so here, or Part 2 (Corporate Welfare), do so here.

Where Do Profits Come From

Let’s examine where business profits come from. The answer can seem both intuitive and counterintuitive. We all know…