1
Used to the conditions of a capitalistic environment, the average American takes it for granted that every year business makes something new and better accessible to him. Looking backward upon the years of his own life, he realizes that many implements that were totally unknown in the days of his youth and many others which at that time could be enjoyed only by a small minority are now standard equipment of almost every household. He is fully confident that this trend will prevail also in the future. He simply calls it the American way of life and does not give serious thought to the question of what made this continuous improvement in the supply of material goods possible. .Ludwig Von Mises
2
These people look upon inequality as upon an evil. They do not assert that a definitedegree of inequality which can be exactly determined by a judgment free of anyarbitrariness and personal evaluation is good and has to be preserved unconditionally. They, on the contrary, declare inequality in itself as bad and merely contend that alower degree of it is a lesser evil than a higher degree in the same sense in which asmaller quantity of poison in a man’s body is a lesser evil than a larger dose. But ifthis is so, then there is logically in their doctrine no point at which the endeavorstoward equalization would have to stop. Whether one has already reached a degree ofinequality which is to be considered low enough and beyond which it is not necessaryto embark upon further measures toward equalization is just a matter of personaljudgments of value, quite arbitrary, different with different people and changing in thepassing of time. As these champions of equalization appraise confiscation and“redistribution” as a policy harming only a minority, viz., those whom they considerto be “too” rich, and benefiting the rest–the majority–of the people, they cannotoppose any tenable argument to those who are asking for more of this allegedlybeneficial policy. As long as any degree of inequality is left, there will always bepeople whom envy impels to press for a continuation of the equalization policy. Nothing can be advanced against their inference: If inequality of wealth and incomesis an evil, there is no reason to acquiesce in any degree of it, however low;equalization must not stop before it has completely leveled all individuals’ wealth andincomes.Ludwig Von Mises
3
Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulatesriches.Ludwig Von Mises
4
People must learn that the accumulation of wealth by the successfulconduct of business is the corollary of the improvement of their own standard ofliving and vice versa. They must realize that bigness in business is not an evil, but both the cause and effect of the fact that they themselves enjoy all those amenitieswhose enjoyment is called the “American way of life.Ludwig Von Mises
5
In the market economy the consumers are supreme. Consumers determine, by theirbuying or abstention from buying, what should be produced, by whom and how, ofwhat quality and in what quantity. The entrepreneurs, capitalists, and landowners whofail to satisfy in the best possible and cheapest way the most urgent of the not yetsatisfied wishes of the consumers are forced to go out of business and forfeit theirpreferred position. In business offices and in laboratories the keenest minds are busyfructifying the most complex achievements of scientific research for the production ofever better implements and gadgets for people who have no inkling of the scientifictheories that make the fabrication of such things possible. The bigger an enterprise is, the more it is forced to adjust its production activities to the changing whims andfancies of the masses, its masters. The fundamental principle of capitalism is massproduction to supply the masses. It is the patronage of the masses that makesenterprises grow into bigness. The common man is supreme in the market economy. He is the customer “who is always right.Ludwig Von Mises
6
The social function of economic science consists precisely in developing soundeconomic theories and in exploding the fallacies of vicious reasoning. In the pursuit ofthis task the economist incurs the deadly enmity of all mountebanks and charlatanswhose shortcuts to an earthly paradise he debunks. The less these quacks are able toadvance plausible objections to an economist’s argument, the more furiously do theyinsult them.Ludwig Von Mises