In fact, both profit and loss have social and economic merit and should be allowed to take their nature course. Agitation for laws against sudden plant closings were a staple of political rhetoric in the 1980s. But none of these trends produce disaster, any more than the failure of an internet startup causes social convulsions. The misery is sector-specific and temporary. The market adjusts because the free economy permits people to adjust to change on the upside and downside.
Immense damage can result from the attempt to stave off inevitable losses.
Protectionism is the classic example. Businesses losing money attempt to shield themselves from foreign competition by keeping artificially high the prices consumers pay for goods and services. These higher prices are a form of taxation, and the protected industries are receiving the revenue. Antitrust is another example. It is a form of regulation that comes to the defense of a marginal firm that is being out-competed by a more profitable firm.