“A firm’s profits may soar, or huge losses pile up, within a few years of each other—or sometimes even within the same year. Both profits and losses serve a key economic function, moving resources from where they are less in demand to where they are more in demand. If the government steps in to reduce profits when they are soaring or to subsidize large losses, then it defeats the whole purpose of market prices in allocating scarce resources which have alternative uses.”

— Basic Economics by #ThomasSowell

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