Monday 18 March 2024

"The real bosses, in the capitalist system of market economy, are the consumers."

"The real bosses, in the capitalist system of market economy, are the consumers. They, by their buying and by their abstention from buying, decide who should own the capital and run the plants. They determine what should be produced and in what quantity and quality. Their attitudes result either in profit or in loss for the enterpriser. They make poor men rich and rich men poor.
    "The consumers are merciless. They never buy in order to benefit a less efficient producer and to protect him against the consequences of his failure to manage better. They want to be served as well as possible. And the working of the capitalist system forces the entrepreneur to obey the orders issued by the consumers.
    "The consumers are no easy bosses. They are full of whims and fancies, changeable and unpredictable. They do not care a whit for past merit. As soon as something is offered to them that they like better or that is cheaper, they desert their old purveyors. With them nothing counts more than their own satisfaction. They bother neither about the vested interests of capitalists nor about the fate of the workers who lose their jobs if as consumers they no longer buy what they used to buy."
~ Ludwig Von Mises from his 1944 publication Bureaucracy


Peter Cresswell said...

... in case you're wondering who it is that's shutting down TV news operations here.

Kiwiwit said...

Unless it’s a highly regulated or state-owned industry like public transport, in which case they treat consumers like cattle, or worse.