Production creates its appropriate consumption, and consumption stimulates its appropriate production. The consumer sovereignty disposes the goods according to the system of wants, and the producer sovereignty delivers the goods according to the production capacity, so these two sides of economic enterprise are dependent on each other. Entrepreneurs govern both the wants of the consumers and the goods of the producers. Thus the practice of economic efficiency denotes the principle: economic goods are not wasted but just transformed in the integrated process of productive consumption as entrepreneurial property.
Historical Backdrop
• FRANCOIS QUESNAY General Maxims of the Economical Government in an Agricultural Kingdom: complete circulation.
• JEAN-BAPTISTE SAY A Treatise on Political Economy: market for products.
• JAMES MILL Commerce Defended VI; Elements of Political Economy: consumption is co-extensive with production.
• THOMAS MALTHUS Principles of Political Economy: the power to produce and the will to consume.
• SISMONDE DE SISMONDI Political Economy and the Philosophy of Government: social income.
• JOHN MAYNARD KEYNES The General Theory of Employment, Interest, and Money: propensity to consume.
• HARRINGTON EMERSON The Twelve Principles of Efficiency: waste elimination.