In reality high profits tend much more to raise the price…
““In reality high profits tend much more to raise the price of (a piece of) work than high wages. (quoting Adam Smith - ch. (III - From Corporatism to Democracy)””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
High profits often increase product prices more than wages raise workers’ earnings, highlighting a disparity in wealth distribution.
In simple terms: Profits raise prices more than wages raise pay.
Key Takeaway
Consider how profit motives affect pricing.
Themes
economics
wealth inequality
pricing
labor markets
capitalism
Mood
critical
analytical
Type
economic
political
philosophical
When to use this quote
- business pricing
- salary negotiations
- policy making
- consumer budgeting
Key Concepts
profit motive
price elasticity
income distribution
Questions to Reflect On
- How do profit-driven price hikes affect low‑income consumers?
- What policies could balance profit and fair wages?
A Different Perspective
High profits can also lead to market distortions and reduced competition.