Creating Consumers

I have described the importance of consumers in the operation of free markets. All production and distribution exist to serve consumers. Consumers ultimately determine all market pricing. But, from where do these all-important consumers come? How do consumers get "created?" According to common usage, we call people who spend money in the economy "consumers." Consumers, … Continue reading Creating Consumers

silver coins on white surface

Lower Producer Costs

The importance of consumer satisfaction—which I have referred to as Consumer Sovereignty—plays a critical role in the behavior of all actors involved in the structure of production. Miners, manufacturers, distributors, and retailers will all try to lower their costs so they can pass the saving on to consumers. To understand this tendency, let's examine the … Continue reading Lower Producer Costs

delighted black female barista serving coffee in cup in cafe

Consumer Sovereignty

Legislating minimum wages, at any level, is a dumb idea. It fits a pattern of dumb ideas suggested by the interventionists in governments. Many of the critics say that minimum wage laws lead to more unemployment. That statement turns out to be accurate, but I want to begin this discussion on a much more fundamental … Continue reading Consumer Sovereignty