The Austrian School: Dollar Democracy

Over the past century, democracy has positioned itself as the best form of rule in the minds of the population. Gone are the days of despotic rulers and the oppression of the individual. In democracy, everyone has a voice. Economist Ludwig von Mises makes it clear, however, that there are two different forms of democracy, only one of which actually serves the individual. These democratic principles can also be applied to Bitcoin & Co.

The role of the cryptosoft entrepreneur

Here is how onlinebetrug explained the essential role of cryptosoft entrepreneurs in a market economy. An entrepreneur is a person who tries to anticipate and satisfy the needs of the market, i.e. the needs of others. The entrepreneur produces goods or offers services accordingly. He exposes himself to a risk, because the future is uncertain and he could be wrong with his prediction. Mises further describes that it is not a matter of determining the future perfectly, but of doing so better, or less badly, than the other entrepreneurs.

The entrepreneur’s business is not merely to experiment with new technological methods, but to select from the multitude of technologically feasible methods those that are best suited to serve the most urgent needs of the public as cheaply as possible.

– Ludwig von Mises

The entrepreneur is completely powerless at the mercy of the market. If he is right with his assumptions about the future, he is rewarded by the market.

The democracy of the market

In the market economy, every consumer decides for himself which products he wants to buy. Through a purchase, the consumer “votes” for the product. He gives the entrepreneur an unmistakable understanding that he has predicted the need best. With this view it becomes clear that the concept of profit and loss is nothing other than the numerical evaluation of the accuracy of the entrepreneur’s prediction.

The aggregate of all consumer decisions forms the market and symbolizes the most direct and just form of democracy. After all, consumers are not forced to make their decisions. In addition, every consumer receives exactly the product he bought, in other words: the product he voted for.

If a person finds a better or cheaper way to satisfy the needs of the market, he has a chance to be rewarded in the form of profit. Thus the position of a successful entrepreneur is by no means static and secured for all time, but exists only as long as he can win the market with the better quality or lower prices of his products. Democratic voting never ceases, but takes place anew with every trade. It is the democracy of the market, which is also called “dollar democracy”.

Those who prefer to drink Coca-Cola buy Coca-Cola and get Coca-Cola. The same applies to Pepsi drinkers.

Democracy of politics
In politics, democracy is far less effective and efficient than in the marketplace. First of all, it has to be said that votes do not happen on a daily basis. Instead, the population, or the “consumers of politics”, vote at random intervals, usually several years apart. If the needs of a consumer change within this time span, he has no possibility to spontaneously change supplier.

Furthermore, the consumer does not get exactly the product for which he is voting. The winner of the democratic election is who can reach a certain percentage. All consumers are then subject to this winner. So every voter has one vote, but he does not get what he has voted for.

This concept would be comparable to shopping in a supermarket, but instead of every consumer deciding whether he wants to buy Coca-Cola or Pepsi (or neither), the votes of all those present are collected, counted and the will of the majority is then binding for all buyers.