Bureaucracy Ludwig von Mises

Introduction:

The terms bureaucrat, bureaucratic, and bureaucracy are applied with an opprobrious connotation. The abusive implication of the terms in question is not limited to some countries, it is universal phenomenon. The word bureaucracy is used loosely.

So what does this word mean?
The characteristic feature of present-day policies is the trend toward a substitution of government control for free enterprise. Many people think that state control is a panacea for all ill.
The delegation of power is the main instrument of modern dictatorship.

Bureaucracy is an organization of non-elected officials who implement the rules, laws and functions of their institutions.

Bureaucracy, its merit and its demerits, its working and its operation, can be understood only by contrasting it with the operation of the profit motive as it functions in the capitalistic market society.

Profit Management
Capitalism or market economy is that system of social cooperation and division of labor that is based on private ownership if the means if production. Free enterprise is the characteristic feature of capitalism. The objective of every enterpriser is to make profit.

Neither the capitalists nor the entrepreneurs nor the farmers determine what has to be produced. The consumers do that. The real bosses in the capitalist system of market economy are the customers.The profit motive is precisely the factor that forces the businessman to provide in the most efficient way those commodities the consumers want to use.
In the capitalist system all designing and planning is based on the market prices.

Neither governments nor businessmen are the guardians of customers. If a man fails  in his endeavors to convince other people of the soundness of his ideas, he should blame his own disabilities.

Within a market society organized on the basis of free enterprise and private ownership of the means of production the prices of consumers' goods are faithfully and closely reflected in the price of the various factors required for their production.

The world is changing everyday and there is a need for a continuous adjustment of the production to the change of the conditions. This is where the entrepreneur comes in.

Responsiblity to the consumer is the lifeblood of business and enterprise in an unhampered market society.