Joseph Alois Schumpeter Getty ImagesDemocrats (as well as some Republicans) don’t understand the crucial role profits play in a vibrant economy. As the legendary economist Joseph Schumpeter (“creative destruction”) pointed out, profit is essential for progress. Ample capital for startups is essential for the discovery and development of new products and services that will enhance future living standards. Like experiments in the laboratory, startups and research and development are crucial to gaining new knowledge that will enable us to advance. A high-margin product or service will attract competitors, which will, in turn, offer buyers an improved and/or cheaper version.

Source: Forbes October 08, 2019 09:56 UTC