The nature of the market system, and more specifically the profit and loss system, is such that it rewards those who contribute in a positive way, and penalizes those who do not contribute positively.

Entrepreneurs act in the immediate term, in hopes of profiting in the medium or longer term. The future is uncertain. There is no guarantee of a profit.

The entrepreneur either makes a profit, or experiences a loss. If he makes a profit, it is a sign that he has benefitted those who bought his product or service. He is rewarded for employing scarce resources wisely.

If he experiences a loss, it is a sign that he has wasted resources, employed them in a way that did not benefit the individuals in society. He is penalized for wasting resources.

The greater the benefit provided, the greater the profit— and a sign to other entrepreneurs that there is great need in this area.

While the leftists, socialists, politicians, economically ignorant commentators lambaste the profit maker, he is the employer of resources that deserves praise; for he is the very decision maker benefitting the world around him! They ought to express frustration at those experiencing losses— for they are unwisely employing resources. But thankfully, they are given just penalty to the very extent of their monetary loss.

The price system has just rewards and penalties built in— no politicians necessary.

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