The Business Cycle

Walter E. Block and Ivan Jankovic
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Walter E. Block: Loyola University New Orleans
Ivan Jankovic: University of Mary

Chapter 6 in Action and Choice, 2022, pp 87-104 from Springer

Abstract: Abstract In the next chapter we will explore the role of entrepreneurship in economic life. We will establish that entrepreneurship represents a key component of the market economy: it distinguishes between good and bad investors and producers by profit and loss; it punishes bad decisions and rewards the good ones. It regulates the capital and labor markets by moving scarce resources from the hands of people who don’t know how to use them effectively to those who do. It prevents waste and inefficiency and promotes economy and cost savings. At the same time, it equilibrates markets by rewarding the industries and enterprises with a higher rate of return. The free market is also an engine of dynamic efficiency and change, motivating people to seek better production and marketing methods that can give them an edge vis a vis competitors.

Date: 2022
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DOI: 10.1007/978-981-19-3751-4_6

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