Should any restrictions be placed on companies' profits?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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This is, of course, a matter of personal opinion, but I would argue that no restriction should be placed on profits.  We live in a free market economy.  So long as companies are not colluding with one another to keep prices high, they should be allowed to charge what they want.  If we are willing to keep buying at high prices, then the company should be allowed to benefit from its ability to cater to our demands.  If the prices are truly too high, some new company will enter the market and steal customers from the older companies by offering lower prices.  So long as that is possible (in other words, markets should be open to competition and we shouldn't allow monopolies), companies should be able to make as much profit as they can.

 

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