Quotation of the Day…

by Don Boudreaux on August 11, 2015

in Seen and Unseen, The Profit Motive

… is from page 114 of the 5th edition (2015) of Thomas Sowell’s Basic Economics:

While capitalism has a visible cost – profit – that does not exist under socialism, socialism has an invisible cost – inefficiency – that gets weeded out by losses and bankruptcy under capitalism.  The fact that most goods are more widely affordable in a capitalist economy implies that profit is less costly than inefficiency.  Put differently, profit is a price paid for efficiency.


Add a Comment    Share Share    Print    Email

Previous post:

Next post: