The main sources of profit change as the economic level changes. We are currently moving from the fourth economic level to the fifth. Accordingly, very soon, only businesses that are engaged in creating goods and providing services of the fifth economic level will be able to have a good profit.
The levels of the economy are commonly referred to as sectors. Currently, there are 5 sectors: primary, secondary, tertiary, Quaternary, and fivefold. At different times, each of these sectors was the “engine of the economy” and gave the owner of the corresponding assets wealth and power, acted as a source of profit, power and recognition.
As the economic level changed, so did the distribution of power, the sources of profit, and the pattern of buyer behavior. Sometimes the power remained with the previous people, if they managed to adapt, but very often they were replaced by completely different people, because the former “strongmen” could not always adapt to the new conditions.
Modern sources of profit
The first was the primary sector of the economy, which includes agriculture and mining. The economy of human communities was based on the primary sector of the economy until the 17th century, and in some places even later. Even now, in Africa, you can find communities living at the first level of the economy.
It was the owners of the assets of the primary sector of the economy, which included land, agricultural land, forests, mines, and the like, who were the wealthiest and most influential during the” reign ” of this sector, because they controlled the sources of profit. These people were the elite and had the highest standard of living.
The secondary sector of the economy, which includes the processing industry, was formed next. The emergence of this sector marked the formation of a new type of economy – the industrial economy. The people who owned the assets of this sector became the elite, because they controlled the new sources of profit.
Where you can earn money today
The XX century was marked by the emergence of a new sector of the economy. It is not difficult to guess that it was the tertiary sector, which was built over the secondary. The sources of profit went to the businessmen who owned the assets of this sector. This sector includes the production of services, technologies, software and other intangible assets.
This also includes logistics and optimization of financial flows, for example through offshore companies. Again, as with the previous change in the type of economy, all those who did not realize that it had changed were ruined. In addition, power passed to those who represented the tertiary sector. All those who could not adapt very quickly lost their previous gains.
Sources of profit of the XXI century
The Quaternary sector is now the most promising and profitable. But it will not be dominating for long, because it is expected that in 2020-2030, the top five sector associated with the formation of motivation will come out in the first place. But for now, the Quaternary sector is still dominant. All sources of profit are located in it.
It is this sector that subsidizes the first three sectors of the economy, which have become unprofitable everywhere. In General, if we consider the economy in global terms, we find quite a clear pattern. It manifests itself in the fact that the business associated with the primary sector, after it lost its importance, became unprofitable everywhere.
In developed countries, we see huge amounts of subsidies to agriculture and the extractive industry. If we consider countries based on the primary sector of the economy, such as countries in Africa, some countries in Latin America and even the CIS, it is obvious that they are actually subsidized by the countries that are most developed in economic terms.
Subsidies as sources of profit
A similar situation has emerged recently in the industrial sector of the economy. Industrial sectors of the economy in the developed world, in fact, are also subsidized. Take, for example, the automobile industry, a symbol of the industrial age. So it has been subsidized by billions of US dollars since the end of the 70s.
The only exception is companies that have post-industrial elements. They have remained profitable, but in fact the industrial part of these companies is subsidized by the post-industrial part. One of the best examples is Porsche, which earns more than others from the sale of a single car due to the post-industrial component.
Real sources of profit
It is at the expense of profits received in high sectors of the world economy that lower sectors of the economy are subsidized, and on a global scale. This means that the more developed countries subsidize the less developed ones. Subsidization occurs because there is a need for products from lower sectors, even though their production does not bring profit.
Where to look for profit today
The problem with industrial enterprises is that they have products, but they do not have a component that is typical for high-end sectors of the economy.
Therefore, it can only be sold cheaply. Sources of profit for such companies are not available, they can not get it in principle. Such enterprises can exist only at the expense of external subsidies.