I am going to give you a highlight of one by Walter Williams last month. You may read the whole article by clicking here.
Profits also force producers to employ resources wisely. If producers waste inputs, their production costs will be higher. In order to cover their costs, they must charge prices higher than what consumers are willing to pay. After a while the company will incur unsustainable losses and go out of business. As a result, the company's resources will become available to someone else who'll put them to wiser use. This process is short-circuited if government offers bailouts in the forms of guaranteed loans, subsidies or restrictions such as tariffs and import quotas on competitive products from abroad. Government "help" enables failing companies to continue squandering resources. In this context it is important to remember that a business going bankrupt doesn't meant that its productive resources will vanish into thin air. It means someone else will own them.
Think about that. It is 100% true. Capitalism will force people to use their resources in the best possible way. It might take some time, but after a while they will go out of business if they don't. We also learn that government is not the solution, but the problem most of the time.
