It has been shown that, in contrast to everything which classical national economy has hitherto taught, not the producer but the consumer is the ruling factor in economic life.
About this quote
- What does it mean?
- Economic life is driven by consumers rather than producers, contrary to classical teaching.
- In plain terms
- Consumers rule the economy not producers.
- What can you take from it?
- Demand shapes economic activity more than supply.
Where it applies
Putting it to work
Questions to consider
- Who really drives value?
- How do we measure economic power?
Another view
Producers still hold significant power in many market contexts.
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