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David Miller explores this question. As Austrians emphasize, firms do respond to the needs and desires of (active) market consumers as they choose what to produce and how. They do market research, and often estimate demand “ahead of time,” or concurrently with when the people realize their own new desires and wants, as innovative entrepreneurs are able to make use of investment resources offered in the marketplace by those with capital (resources). ” Austrian economists might ask: what does this mean, artificially induced?

The concept of coercion is only applicable in describing relationships between and among individuals; the concept is irrelevant when examining the material circumstances of individuals.

On Freedom and Free Enterprise: Essays in Honor of Ludwig von Mises. Princeton, NJ: D. Van Nostrand Co. Accessed January 31, 2013. pdf. ———. 1970. Power and Market: Government and the Economy. Menlo Park, CA: Institute for Human Studies, Inc. ———. 1993. ), The Fortune Encyclopedia of Economics. New York: Time Warner Books, pp. 636–39. Shleifer, Andrei and Robert W. Vishny. 1994. “The Politics of Market Socialism,” The Journal of Economic Perspectives 8 (2): 165–76. Shostak, Frank. 2007. “Marginal Utility Is Not Rocket Science,” Mises Daily, Tuesday, June 5.

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