Profitability and Performance

The "profitability" is a meaningful concept in an industrial economy. Archangels in command of an industrial enterprise would have to make profitability as much the first law of their actions and policies as the greediest "capitalist". Indeed, it is Communist theory which–so far alone–has recognized profitability as the decisive element and as the dominant consideration in an industrial economy. Profitability operates as much under collectivism as under individualism, under government control and government ownership as in a free-enterprise system. The rationale, behavior, policies and decisions of the enterprise are completely independent of the mode of distribution of profits. Both future costs and increased productivity can be measured only with the yardstick of profitability. The industrial enterprise must base itself on profitability and must accept profitability as the guide for its policies and as the governor of its performance. Society must measure the performance of the enterprise by the same yardstick of profitability.