Oh, and there are no “excess profits”.
I probably used the term “excess profits” inaccurately. My knowledge of economics is largely practical rather than theoretical.
When I said “excess profits” I meant the high profit levels, a result of demand exceeding supply (Point A), that induces competitors to expand their capacity and new competitors to enter the field. As others have pointed out, the expanded capacity eventually catches up with demand and exceeds it (Point B), resulting in price competition that eventually forces less-efficient competitors out and the stabilizing of prices at a level that provides more “normal” profit levels (Point C).
You really don’t want to argue this point with me, as I’ve spent the last five years riding this roller-coaster, with Point C reached in the last year.
I find it extremely bizarre that anyone on a “conservative” forum would argue against the most basic principles of free market economics.