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In economics, the '''consumer''' is the individual or household which purchases [[goods]]. All business persons are subject to the sovereignty of the consumer. As soon as a [[entrepreneur]] or [[capitalist]] ceases to serve the consumer better than his peers, he loses his position and suffers losses. As [[Ludwig von Mises]] puts it: | In economics, the '''consumer''' is the individual or household which purchases [[goods]]. | ||
==Sovereignty of the Consumer== | |||
All business persons are subject to the sovereignty of the consumer. As soon as a [[entrepreneur]] or [[capitalist]] ceases to serve the consumer better than his peers, he loses his position and suffers losses. As [[Ludwig von Mises]] puts it: | |||
<blockquote>"[Consumers] buying and their abstention from buying decides who should own and run the plants and the farms. They make poor people rich and rich people poor. They determine precisely what should be produced, in what quality, and in what quantities...Only the sellers of [[goods and services of the first order]] are in direct contact with the consumers and directly depend on their orders. But they transmit the orders received from the public to all those producing [[goods and services of the higher orders]]...The consumer is in a position to give free rein to his caprices and fancies. The [[entrepreneurs]], [[capitalists]], and farmers have their hands tied; they are bound to comply in their operations with the orders of the buying public."<ref name="humanaction_consumer_sovereignty">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap15sec4.asp XV. Market], 4. The Sovereignty of the Consumers, [[Human Action]], online version, referenced 2011-02-05.</ref></blockquote> | <blockquote>"[Consumers] buying and their abstention from buying decides who should own and run the plants and the farms. They make poor people rich and rich people poor. They determine precisely what should be produced, in what quality, and in what quantities...Only the sellers of [[goods and services of the first order]] are in direct contact with the consumers and directly depend on their orders. But they transmit the orders received from the public to all those producing [[goods and services of the higher orders]]...The consumer is in a position to give free rein to his caprices and fancies. The [[entrepreneurs]], [[capitalists]], and farmers have their hands tied; they are bound to comply in their operations with the orders of the buying public."<ref name="humanaction_consumer_sovereignty">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap15sec4.asp XV. Market], 4. The Sovereignty of the Consumers, [[Human Action]], online version, referenced 2011-02-05.</ref></blockquote> | ||
Revision as of 04:34, 6 February 2011
In economics, the consumer is the individual or household which purchases goods.
Sovereignty of the Consumer
All business persons are subject to the sovereignty of the consumer. As soon as a entrepreneur or capitalist ceases to serve the consumer better than his peers, he loses his position and suffers losses. As Ludwig von Mises puts it:
"[Consumers] buying and their abstention from buying decides who should own and run the plants and the farms. They make poor people rich and rich people poor. They determine precisely what should be produced, in what quality, and in what quantities...Only the sellers of goods and services of the first order are in direct contact with the consumers and directly depend on their orders. But they transmit the orders received from the public to all those producing goods and services of the higher orders...The consumer is in a position to give free rein to his caprices and fancies. The entrepreneurs, capitalists, and farmers have their hands tied; they are bound to comply in their operations with the orders of the buying public."[1]
References
- ↑ Ludwig von Mises. XV. Market, 4. The Sovereignty of the Consumers, Human Action, online version, referenced 2011-02-05.