--- title: "Meaning & Key Takeaway of: By rendering their enterprises…" description: "\"“By rendering their enterprises profitable, the consumers shift control of the factors of production into the hands of those businessmen who serve them..." image: "https://sms4smile.com/quotes/i/eb0/ludwig-von-mises-364_business_by-rendering-their-enterprises-profitabl_1658969.png" --- # By rendering their enterprises profitable, the consumers… ![“By rendering their enterprises profitable, the consumers shift control of the factors of production into the hands of those businessmen who serve them best. By rendering the enterprises of the bungling entrepreneurs unprofitable, they withdraw control from those entrepreneurs with whose services…” quote by Ludwig von Mises](https://sms4smile.com/quotes/i/eb0/ludwig-von-mises-364_business_by-rendering-their-enterprises-profitabl_1658969.png) [Download](https://sms4smile.com/quotes/i/eb0/ludwig-von-mises-364_business_by-rendering-their-enterprises-profitabl_1658969.png) [Open image](https://sms4smile.com/quotes/i/eb0/ludwig-von-mises-364_business_by-rendering-their-enterprises-profitabl_1658969.png) > ““By rendering their enterprises profitable, the consumers shift control of the factors of production into the hands of those businessmen who serve them best. By rendering the enterprises of the bungling entrepreneurs unprofitable, they withdraw control from those entrepreneurs with whose services they disagree. It is antisocial in the strict meaning of the term if governments thwart these decisions of the people by taxing profits. From a genuinely social point of view, it would be more “social” to tax losses than to tax profits.”” [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. People allocate resources by rewarding successful producers and penalizing unsuccessful ones; taxing profits interferes with this market signal, while taxing losses would be more socially aligned. **In simple terms:** Markets reward success and punish failure; taxes should reflect that. Key Takeaway Tax profits less, tax losses more. Themes economics property rights government policy market signals Mood analytical critical neutral Type economic political philosophical When to use this quote - business decisions - investment choices - government budgeting - entrepreneurial risk Key Concepts liberalism spontaneous order taxation theory Questions to Reflect On - How would taxing losses affect entrepreneurial risk? - Can society benefit from rewarding failure? A Different Perspective Taxing profits may discourage investment and growth. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Point of view](https://sms4smile.com/quotes/about/point-of-view/) ## Related quotes > [Taxing profits is tantamount to taxing success.](https://sms4smile.com/quotes/ludwig-von-mises/taxing-profits-is-tantamount-to-taxing-success/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Ireland cannot become the collector general for the world. 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