The biggest misconception about economics is that it is a zero-sum game: that the wealthy are benefiting at the expense of the poor. But if you completely eliminate the wealthy, how does that make anyone else wealthy? With no wealth, that means that EVERYONE is poor.
Wealth is only created by benefiting your fellow man. It is NOT created by ripping someone off. If it were, the person would not buy the product.
You have to make choices. Economics is about making decisions to maximize your ability to get what you want. I serve you, you pay me. Someone serves me, I pay him. When you destroy that, you destroy a free society.
This means that someone else dictates what we are to get, and we have no say so over the matter.
I don’t know many that would wish to live in such a society.
When I sell a product, I have a high incentive to provide the best product possible, because you do not have to buy the product.
However, if I had a gun to your head, or threatened to lock you into a cage, I would have less incentive to provide as good of a product because I can get away with less.
This is the nature of the government: the government has the highest authority in the land to kill or imprison.
If you don’t like what they do, they can arrest you or kill you.
Are they ALWAYS going to provide us with the best possible products? That is an awfully optimistic (and somewhat delusional) view of government.
However, is a producer always going to provide the best product for the consumer? Probably not. But if a consumer is unhappy, don’t you think another producer will try to do a better job so that they can receive the consumer’s money?
How is it that every company succeeds by ripping people off? Will at least not ONE company try to meet the needs of the consumer?
This is what the free market is all about.
June 13, 2013.