Production, Enterprise, and Service to Society - Ludwig von Mises - Mises Daily

Production, Enterprise, and Service to Society - Ludwig von Mises - Mises Daily: "In the capitalistic economy, it is consumer demand that determines the pattern and direction of production, precisely because entrepreneurs and capitalists must consider the profitability of their enterprises."

"Entrepreneurs try to produce those goods the sale of which offers them the highest possible gain. They expand production of any particular item up to the point at which it ceases to be profitable. If the entrepreneur produces only those goods whose sale gives promise of yielding a profit, this means that they are producing no commodities for the manufacture of which labor and capital goods must be used which are needed for the manufacture of other commodities more urgently desired by consumers."

"By shifting the height of wages, the market directs workers into those branches of production in which they are most urgently needed. Thus the market supplies to each type of employment that quality and quantity of labor needed to satisfy consumer wants in the best possible way."

"In the capitalistic society, men become rich — directly as the producer of consumers' goods, or indirectly as the producer of raw materials and semiproduced factors of production — by serving consumers in large numbers. This means that men who become rich in the capitalistic society are serving the people. The capitalistic market economy is a democracy in which every penny constitutes a vote. The wealth of the successful businessman is the result of a consumer plebiscite. Wealth, once acquired, can be preserved only by those who keep on earning it anew by satisfying the wishes of consumers."

"Directly or indirectly, capitalistic production serves primarily the consumption of the masses."