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How does a free market benefit consumers?

By free market I mean as unregulated as possible. I know that a lot of people dream about a completely free market, with no government interference. Explain how that would make your life better on a day to day basis or in the long run.

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barefootbooks

Asked by barefootbooks at 12:44 PM on Aug. 27, 2010 in Politics & Current Events

Level 11 (501 Credits)
Answers (17)
  • Because in a true free market nobody engages in a transaction that is not equally beneficial to both parties. It's the screwed with type of market we have that leads to people being ripped off. There is no chance to have equally beneficial transactions when the government tampers with it by adding levies and fees to the supplier who can then no longer afford to offer their good or service at all without passing a portion of that cost on to the consumer. In the meantime, competitors are forced out of the market by the increased demands of those extra taxes and fees, reducing choice for the consumer, creating monopolies for basic needs and essentially holding them hostage where they can submit or perish.
    NotPanicking

    Answer by NotPanicking at 12:58 PM on Aug. 27, 2010

  • I was going to try to take crack at it but NotPanicking summed it up beautfiully.
    sopranomommy

    Answer by sopranomommy at 2:08 PM on Aug. 27, 2010

  • So consumers get lower prices and more choices? Is that the gist of it?

    How does a free market deal with deceptive practices or negligence on the part of business?

    Are consumers safer from harm in a free market?
    barefootbooks

    Comment by barefootbooks (original poster) at 2:18 PM on Aug. 27, 2010

  • In a truly free market, one would HOPE that businesses that engage in fraudulent or deceptive business practices would die the death they so richly deserve.
    gdiamante

    Answer by gdiamante at 3:37 PM on Aug. 27, 2010

  • It's unrealistic not to have oversight and regulations. You think this would make things more fair? The rich would walk all over you even more then they do now, and we would all be screwed. In a nice perfect world this might work if everyone started out equal. In our world we live in now, the rich would take advantage of the consumer for it's bottom line. Why wouldn't they, who would stop them?

    mommom2000

    Answer by mommom2000 at 4:05 PM on Aug. 27, 2010

  • The consumer would stop them by not buying or using their product.

    Natesmom507

    Answer by Natesmom507 at 4:46 PM on Aug. 27, 2010

  • "The consumer would stop them by not buying or using their product."

    Again, that is the ideal. Communism was supposed to work in an ideal world, too, and we all know how that worked out.
    gdiamante

    Answer by gdiamante at 5:06 PM on Aug. 27, 2010

  • Consumers wouldn't have a say. What would they stop buying, gas, food. Big corrupt business would have the say. Rules and regulations are what keep things in Balance. We don't live in Alice In Wonderland world. Didn't we learn our lesson on what deregulation gets us. Greed is a reality.

    mommom2000

    Answer by mommom2000 at 5:12 PM on Aug. 27, 2010

  • "The consumer would stop them by not buying or using their product."

    Again, that is the ideal.
    ------
    No, it isn't. No-one can force me to buy something that I don't want, don't trust, or can't afford. Except for the gov't. And then people wonder why some of us want smaller gov't.
    29again

    Answer by 29again at 5:56 PM on Aug. 27, 2010

  • So under the free market scenario, you buy a product. The product hurts or kills someone because it is defective, tainted, spoiled, or badly designed. You stop buying the product. Eventually enough people have the same experience that sales decrease to the point that the company decides to change its practices. In the mean time, it is consolation enough to you that the company was punished in some way for the suffering you experienced. No one forced you to buy the product, so only you are to blame for your choice in the first place. Should you choose to sue, it is up to you and you alone to prove you were harmed and pay for litigation costs up front.

    I'm still unclear on how to prevent monopolies in a free market. What if one company gets so big it destroys its competitors and you end up with fewer choices and higher prices? What is the solution there?

    barefootbooks

    Comment by barefootbooks (original poster) at 6:12 PM on Aug. 27, 2010

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