Rick Lowe
Dr. Robert Murphy points to the importance of profit and loss to an economy at Mises.org. He starts out by saying:
"Many naïve observers of the market economy dismiss concern with the "bottom line" as a purely arbitrary social convention. To these critics, it seems senseless that a factory producing, say, medicine or shoes for toddlers stops at the point when the owner decides that profit has been maximized. It would certainly be physically possible to produce more bottles of aspirin or more shoes in size 3T, yet the boss doesn't allow it, because to do so would "lose money." On the other hand, many apparently superfluous gadgets and unnecessary luxury items are produced every day in a market economy, because they are profitable. Observers who are outraged by this system may adopt the slogan: "Production for people, not profit!"…
It's high time our government used this system to determine the viability of services they offer.
Why not apply it to each law passed in Parliament? Review them every five years with a cost benefit analysis. If they're not performing the intended function or wasting valuable taxpayer dollars, dispense with them. I'm sure they'll find ways to add a new law that they think will correct all ills.
The interesting thing about the profit and loss system is we as consumers inform retailers of our desires and willingness to buy their products. If we think the price is too high, or we value our cash more than the good or service, we don't buy.
If government services and taxation worked on a voluntary basis, instead of threatening us with jail time if we don't comply, they would soon determine better ways to use our tax dollars. The social function of the profit and loss system will apply equally as well to government services.
