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by pwk
5722 days ago
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How is that a free market? A free market doesn't guarantee that you get to stay in business. what good is a socket set for 15ยข less than the competition when the socket set company that used to pay you $35,000 a year moves to Indonesia and now pays you $0? Over the long term and looking at the bigger picture, we'll hopefully wind up with a good number of people in Indonesia who are better off. |
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What's the practical difference between a government saying "You must sell your product for this price or we won't allow you to do business in this industry" and Wal-Mart saying the same thing?
You're right that there might not be much of a practical difference for the company making the socket sets, but they aren't the only factor in the equation. Your question addresses only the seller, and markets are made of both sellers and buyers.
If the government sets price limits, that means the company can't do business even if there's a willing buyer. You're removing the right of free choice.
When it's Wallmart setting a price that they're willing to pay, and it's lower than the price the company is able to sell for, that just means there isn't a willing buyer. Wallmart is in some sense acting as a proxy for the people who shop there, who are clearly saying that price is what's important to them.
To paint an exaggerated picture: if I'm trying to sell my socket sets for $1000 each, and no-one wants to buy them, that doesn't mean the market isn't free, it just means that there isn't a match in the buyer side of the market for my product.