Saturday, August 16, 2008

Profits Are Bad?

This is socialist indoctrination. Glorifying a man for his charity, yet implicitly criticizing all those that profit from their work. Perhaps if the people charged with the responsibility of educating the world's youth were better equipped with some sound economic understanding they would recognize that profits, or losses, are morally neutral. Profit is neither good nor bad. In fact, a world without capitalism and the market economy would still feature profit and loss. Every person engages in actions that strive to establish a superior state of affairs to whatever exists presently. Whether or not the chosen action achieves the desired result determines if there is a "profit" or a "loss". Profits and losses are psychic qualities that exist wherever human beings employ reason and will in determining particular modes of action. But only in the market economy--in capitalism--can people attribute specific values to the results of their actions and recognize which are more or less profitable. As Mises explained, profits and losses are ubiquitous.

HT: Captain Capitalism

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