Business and Economic Change

Tags: Austrian Economics Overview, Free Markets

11/20/2010 Matthew McCaffrey

Profit and loss is the heart of business and economic change. Entrepreneurs drive the market at every level, predicting future wants and taking risks with their property. Earning profits is never guaranteed. Bankruptcy puts resources to better use under new management. Bailing out failing businesses creates moral hazards that rewards bad behaviors and prevents the market from experiencing the beneficial effects of business losses.

Recorded at the Mises Institute on Friday, 19 November 2010. Sponsored by Anastasia Thiele.

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.

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