Business sales are lower. Interest rates are higher. The federal government's budget deficit crisis is worse. These unpleasant consequences are the result of ignoring the essential role of profit in creating resources and stimulating the economy. Profit results when the value of the outputs of an economic enterprise is worth more than the cost of the inputs.
Profits mean that the economic enterprise has added to the economy's wealth.
Each increment of profit on each subsequent transaction adds more to the economy's wealth. The compounding of these increments over time is what enables us to enjoy a higher standard of living than earlier generations. Profits accrue to those businesses that have satisfied their customers. Profits act as both a message and a means for these businesses to continue and expand. Losses send a different message.