Thursday, October 17, 2013

Why Tolerate The Destruction of Profit - The Prime Generator Of Income?

Since profit is the prime generator of other incomes the destructiveness of monetary economic intervention on interest rates and on both entrepreneurial profit and the purchasing power component of profit have repercussions and reverberations throughout the economy.

Other types of economic intervention (e.g. regulations) also constrain prices or production causing either shortages or surpluses that cannot be remedied by the natural market processes because of the coercive characteristics of the intervention. This is what happens in the unnatural condition of a hampered economy because it is being subjected to this type of political corruption of the economy.

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