… came Ludwig von MisesApril 1960 Freeman Article titledEconomic foundations of freedom“
The economic basis of this bourgeois system is a market economy in which the consumer is sovereign. The consumer, that is, everyone, by buying or refraining from buying, decides what should be produced, in what quantity and in what quality. The traders are forced to honor the client’s order as a profit and loss instrument. Only those enterprises that provide as much and as cheaply as possible are those that enrich those goods and services that consumers care most about. Those who fail to satisfy the public will suffer losses and eventually be forced to go out of business.
DBXIndustrial policy advocates replace everyone on their own. Such hubris.
Industrial policy advocates operate under two misconceptions, one of arrogance and the other of naivety. First, they presumptuously assume that they have superhuman knowledge of what the resource allocation system should be. Second, they naively assume that their chosen wealth transfers can be trusted to coercively engineer government.
