Association

Definition and demarcation

An association is a union of consumers, traders and producers with the goal of affecting the prices in such a way, that all participants are happy with these prices. Unlike trusts and agencies, associations do not work at the expense of consumers, because these are directly involved in all decisions. In contrast to consumer cooperatives, the consumers do not try to take control of trade and production tasks.

In order to adapt the supply of goods and services in such a way that consumers can afford the products they need, the associations have an influence on the number of persons employed in that respective branch. If a product becomes too cheap for the producer, less of it must be produced. The production capacity is then needed in other branches, where the products are still too expensive for the consumers because the supply is too low.

In order to adapt the money supply dynamically to the material economy, the associations make the money age as quickly as the means of production. Because if means of production drops out completely, there is nothing more to exchange. The money loses its value. Both - the means of production and the money - must then be replaced in good time.