Sources of profit in modern economic conditions
The main sources of profit change following the change in the economic level. We are currently moving from the fourth economic level to the fifth. Accordingly, very soon only businesses that are engaged in the creation of goods and the provision of services of the fifth economic level will be able to have a good profit.
The levels of the economy are called sectors. Currently, there are 5 sectors: primary, secondary, tertiary, quaternary, quinary. At different times, each of these sectors was the "locomotive of the economy" and gave the owner of the respective assets wealth and power, acted as a source of profit, power and recognition.
With a change in the economic level, the distribution of power, sources of profit, and the buyer's behavior model have changed. Sometimes the power remained with the old people, if they had time to adapt, but very often they were replaced by completely different people, because the former "powerful ones" could not always and wanted to adapt to new conditions.
Modern sources of profit
The primary sector of the economy was the first to develop, which includes agriculture and mining. The economy of human communities was based on the primary sector of the economy actually until the 17th century, and in some places even later. Even today in Africa you can find communities living at the first level of the economy.
It was these people who made up the elite and had the highest standard of living.
It was the owners of the assets of the primary sector of the economy, and they included land, agricultural land, forests, mines, and the like, who were the richest and most influential during the “reign" of this sector, because it was they who controlled the sources of profit. It was these people who made up the elite and had the highest standard of living.
The secondary sector of the economy, which includes the processing industry, developed next. The emergence of this sector marked the emergence 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 can you earn today?
The 20th 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 on top of the secondary. The sources of profits went to the businessmen who owned the assets of this sector. This sector includes the production of services, technologies, software and other intangible assets.
Everyone who could not adapt very quickly lost what they had previously acquired
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 understand that it had changed were ruined. In addition, power passed to those who personified the tertiary sector. Everyone who could not adapt very quickly lost what they had previously acquired.
Approximately from the 80s of the 20th century, the tertiary sector began to gradually lose ground, and in the last decade of this century it completely gave way to the quaternary sector. The quaternary sector includes the creation of fundamental results, the formation of the skill level of workers, as well as the commercialization of new ideas.
Sources of profit of the XXI century
The quaternary sector is now the most promising and profitable. But it didn't have long to dominate, because it is expected that in 2020-2030 the five-fold sector associated with the formation of motivation will come out on top. But so far the Quaternary sector is still dominant. All sources of profit are in it.
It is at the expense of this sector that the first three sectors of the economy are subsidized, which everywhere have become unprofitable
It is at the expense of this sector that the first three sectors of the economy are subsidized, which everywhere have become unprofitable. In general, if we consider the economy on a global level, then a quite distinct pattern is revealed. 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 gigantic amounts of subsidies to agriculture and the mining industry. If we consider the countries based on the primary sector of the economy, and these are the countries of Africa, some countries of Latin America and even the CIS, then it is obvious that they are actually on subsidies from the countries that are most developed economically.
Grants as sources of income
A similar situation has emerged recently in the industrial sector of the economy. Industrial sectors of the economy in the developed countries of the world, in fact, are also on subsidies. Take, for example, the automotive industry, a symbol of the industrial age. So, since the end of the 70s, it has been subsidized by billions of US dollars.
In the modern economy, the main sources of profit are in the quaternary sector
The only exceptions are companies that have post-industrial elements. They have retained profitability, 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 one car due to the post-industrial component.
In the modern economy, the main sources of profit are in the quaternary sector. However, in some industries, the tertiary sector is still profitable. Within its framework, the products are: software, qualified services, technology, mass culture products, finance, including the world's reserve currency – the US dollar.
Real sources of profit
It is at the expense of profits received in the high sectors of the world economy that the lower sectors of the economy are subsidized, and on a global scale. This means that more developed countries subsidize less developed ones. Subsidizing occurs because there is a need for products of low sectors, even though their production does not bring profit.
This is precisely the reason for the current problems of business based on outdated premises.
In the countries of the former USSR, everything turned out so that representatives of the secondary, i.e., became at the helm of many companies. industrial sector of the economy. There were an overwhelming majority of such companies, and, consequently, it was the norm to consider that industry, and in some places also agriculture, was the most productive force. This was a big mistake.
For some time, industry and agriculture still gave some profits, but they kept getting smaller and smaller. This is precisely the cause of the current problems of business based on outdated premises. In fact, such a business has to work with something that does not make a profit a priori. It brings income, but no profit.
Where to look for profit today
The problem of industrial enterprises is that they have products, but they do not have a component that is typical for high sectors of the economy. Therefore, it can only be sold cheaply. Sources of profit for such companies are not available, they cannot receive it in principle. Such enterprises can exist only at the expense of external subsidies.
Noomarketing is a tool for promoting products of high sectors of the economy, which makes a profit
Living off subsidies is not the only solution. A more correct solution is to start producing and selling products using technologies from high sectors of the economy. One such technology is noomarketing. Noomarketing is a tool for promoting products of high sectors of the economy, which makes a profit.