Sowell on Inefficiency

quotes capitalism profit inefficiency

12 Aug 2015

Thomas Sowell on profit and capitalism:

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.

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