Programming Pauls of Wisdom

Profit in the Middle Ages

I have been struck recently by the idea of profit. "red herrings and white elephants", a sort of entymological-lite book on the origin of english phrases put me on to it.

The middle Ages saw the rise of the modern economy, middle classes in suffcient numbers, beginnings of democracy and a capital system not directly linked to the land. It also saw the rise of the term "bakers dozen". This means 13 not the more usual 12. And it apparently arose from bakers selling to a middleman would give 13 loaves not 12. The middleman would then sell the loaves to the public direct, using the 13th loaf as profit.

Now profit of 1/13th (7.7%) is quite a bit less than todays "average" profit, which according to memory is 10-15% (1/7th) (10% is enough survive 15% is enough to grow). (20% is what R. Murdoch aims for in all his businesses)

So what has changed in 400 years to double the amount of profit a business can or should make?

When I think of it I'll get back to you.



An alternate view on this that may throw all my clever calculations in the bin:
http://www.straightdope.com/mailbag/mbakersdozen.html

posted by paul @ 3:21 AM