People living in capitalist countries, even if they are not completely free, do not think about it. As customers, they place orders with suppliers. As producers, they fulfill customer orders. Consumers are the bosses and producers serve them. And the producer gladly accepts this role, because in turn he wants money to order goods as a consumer in the market. Because we produce to consume, not the other way around, a free economy, as opposed to an unfree one, naturally organizes around this principle.
In the case of Christmas, you placed an order with your supplier, not the other way around. Producers cannot order you to buy from them. Only public producers who are governments or government-backed suppliers can do this. In his 1969 book Éloge de la société de consommation (In Praise of Consumer Society), French philosopher Raymond Lhuillet describes a market economy in which consumers are sovereign, and a plan in which producers run the show. We have explained the differences between economies (under government control):
In a market economy, demand is essential and supply is complementary. In a planned economy, supply is essential and demand is auxiliary.
« In a market economy, demand is impulsive and supply is sought after. In a planned economy, supply is impossible and demand is required. »
This is why you can have a happy Christmas if you have the opportunity to live in a somewhat free society (and you don’t have to be a hermit).
Merry Christmas!
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Contrary to the EconLog blogger, Santa finds it difficult to draw letters.
