The Economics of Social Media

originally posted on Concept Hub

Last week I StumbleUpon(ed) a video titled Liberty and Economics, a story about Ludwig Von Mises, a 20th Century Economists who died in 1973.

Mises  passion and work was to prove that economic prosperity lies in the unrestricted actions of individuals buying, selling, and producing goods in an open market. He fought for individual freedom and opportunity for all people.

As I watched the video I thought about how Social Media has expanded the territory of open markets and individual freedom. Through the tools that enable ongoing conversations/collaboration, the discovery of buyers, sellers, and partners and the unrestricted feedback loop, we have created a peer to peer market that ensures good service, high standards for products and opportunity & wealth for all those who choose to participate.

We have knocked down geographic boundaries, released our creativity, and ideally we are expanding our goodwill.

More now than ever the consumer is king. Now more than ever consumers decide what businesses produce, in what quantity and when changes or upgrades need to be made. Not only do consumers vote with their dollars, but now they get to vote with their opinions as well as their own entrepreneurial contribution.

The video suggested that consumers want the largest choices of products at the best possible prices (and I would add the best service) which is only possible through a free market system. A truly free market system is dependent on free flowing information and the ability to gain and share knowledge and opinions. That is what social media has provided us.

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Julie squires

Sherry, hi.

I first read about Ludwig Von Mises through the Foundation of Economic Education http://www.fee.org/, a great source for additional info on freedom, entrepreneurism and liberty. I think you’re the first to connect them to social media, though. Great thinking! Best, Julie