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The market is an entrepreneurial process

Looking only at the status quo—the economy that we can observe in the present—or the changes that have happened in the recent past, we could easily conclude that the economy is a fairly static system that is far from maximizing the use of resources. It would be easy to find inefficiencies and come up with other potential solutions. But this would be an enormous mistake. The market process is primarily about figuring out how to create new value for consumers—it is not about maximizing output in current production. It is an entrepreneurial process.

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As Mises put it, the manager is the "junior partner" of the entrepreneur. Simply put, management solves an entirely different problem than entrepreneurship. It is about maximizing the outcome of a production process (typically in terms of profit). It is a fundamental error to misconstrue the mark...

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Value

It is easy to jump to conclusions and assume that the bread is valued more than the ingredients because additional resources were used to make it. This is false. It is the other way around: we choose to invest the resources—ingredients, manpower, time—because we expect the bread to give us greate...

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Thus, market production is empathic—your ability to provide value for others ultimately determines the value you get in return for your efforts... The economy and society are two sides of the same coin. It is not possible to separate the market process from society and civilization. As with so ma...

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CURATED FROM

CURATED BY

claudiu_florea

A sparkling curious mind

This is one of those books that everyone ought to read in order to better understand how the world works and the how society and economy are the same thing.

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