From: kass@media-lab.media.mit.edu (Andrew Kass)
Subject: Re: Fair profits and Killings (was: SPA piracy raid at Oregon?)
Reply-To: kass@sj.ate.slb.com
Organization: Schlumberger Technologies ATE, San Jose
Distribution: na
Date: Mon, 27 Jul 92 17:38:51 GMT

In article <9959@sun13.scri.fsu.edu>, stricher@masig.fsu.edu (Char Aznabul)
writes:
|> In article <0105011F.99c9sv@dragon.enigami.mv.com> cory@enigami.mv.com (Cory
|> |> Kempf) writes:
|> [quoting me]
|> 
|> + >Programmers deserve to make a living, not a killing.
|> + 
|> + I really cannot understand this attitude.  Why are software engineers
|> + special in this case?  Why shouldn't they be allowed to make money
|> + from their abilities?  Why is it that the parasites of the world seem
|> + to think that there are classes of people who, instead of being rewarded
|> + for their abilities, should only be allowed to exist.
|> 
|> Do you complain about oil companies? Why shouldn't they be permitted to
|> make a killing? The same for any manufacturing corporation - why shouldn't
|> they be permitted to make a killing?
|> 
|> Let me take a WAG: you are a programmer, and secretly desire to make a
|> killing, so you can retire at 40?
|> 
|> This is the attitude that I don't understand - why should you be permitted
|> to make a killing? Please do explain this.
|> 
|> James
|> 

Begin Economics 101

Why shouldn't he be allowed to make a killing? If he writes some program that
no one else could write, and everyone decides that they need it, then why
shouldn't he be allowed to sell it. If he sells it for $300 and people decide
that it is worth $300 then why shouldn't he be allowed to sell as many copies
as he wants? And if no one wants to pay that much, then he won't sell any
copies.

If he is selling tons of copies at $300 apiece, and making a killing, then
other people will see this and say "boy, I could write something better, and
sell it for $250 and make a killing". This is called competition in a free
market. If someone is making a killing, then other people will jump into the
market to get a peice of the action. If someone spends the time and money to
make something that is superior, why shouldn't he be allowed to make a
killing?

Why shouldn't oil companies be allowed to make a killing? Because they are big
and bad? There is no law restricting their rights to make profits. They can
charge as much as they want. You don't think it is fair to you or something if
they charge a lot of money and make huge amounts of profits? Why? They are
providing a service to you. If they charge $10.00 a gallon for gas, and you buy
it, then you are saying "This gallon of gas is worth $10.00 to me." If you
don't think gas is worth $10.00 a gallon, then don't buy it, and they will be
forced to lower their price until people start buying it again. You have no god
given right to be able to buy gas for $1.25 a gallon. 

The same is true for manufacturers. You think that they should not be allowed
to charge whatever they want? If a manufacturer charged $100 for a light bulb
you would obviously not buy it, right? But if you could buy a new computer for
$100 you would right away. Why? Becuase to you, the computer is worth $100 and
the light bulb is not. If people are buying a product than it is because it has
some value to them that is more than what they payed for it. 

Oil companies and manufacturers are allowed to make killings, why should
programmers not be allowed to? Lotus first markets 1-2-3. They make a HUGE
killing. Everyone realizes that they want this program, and it is worth the
$300 that they shell out for it. Then in a little while, Microsoft starts
selling Excel to eat into Lotus' market share and get a peice of the pie. Then
we get Wingz, Resolve, Full Impact, etc (none of this is necessarily
chronologically correct).

I am currently working on developing a new program targeted at law offices. If
I come up with a really good idea (which I did) and get out a good
implementation of this idea, and lots of law offices decide that the increased
productivity this program will give them is greater than the $300 they spend to
buy it, why should I not be allowed to make a killing. I have spent huge
amounts of my time, effort and money in developing this product. I should be
entitled to whatever rewards I can reap. In time, if this is successful, other
companies will begin marketing programs that perform the same functions, and I
will have to lower prices to stay competitive. This whole process is called
capitalism. And by the way, I do plan on making a killing on this program if I
can, but I really doubt it. But there is no reason why I shouldn't be allowed
to make a ton of money if I can supply people with something that they really
need. If they don't want to pay $300 for my program, they can go out and write
one themselves or do without.

End Economics 101

Andrew

James, do they not teach Economics in your school, or do you just go to school
in a communist country?