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Quotation of the Day…

… is from page 171 of the original edition of Henry Hazlitt’s classic 1946 volume, Economics in One Lesson:

One function of profits, in brief, is to guide and channel the factors of production so as to apportion the relative output of thousands of different commodities in accordance with demand. No bureaucrat, no matter how brilliant, can solve this problem arbitrarily. Free prices and free profits will maximize production and relieve shortages quicker than any other system. Arbitrarily-fixed prices and arbitrarily-limited profits can only prolong shortages and reduce production and employment.

DBx: Yes.

You show me someone who denounces profits and I’ll show you someone who doesn’t understand the first thing about economics.