Wednesday, August 28, 2019

Mandatory products, rigged markets and political corruption


Products that are made mandatory tend to be garbage because there's no incentive to improve them. Instead, they tend to become worse over time.

That's the advantage a free market has.
In a free market if a product is crap and people have to pay full price for it, then it will soon disappear into oblivion. Not so with those things forced on people, where the choice to decline is not allowed.

Any government effort to distort the market, to favour one product over another, will have a similar, but less dramatic effect.

Such intervention will keep garbage products in the market by keeping their price artificially low, while competing products that have to charge their full price will have their demand kept artificially low in comparison.

This is one way markets are corrupted by powerful vested interests, who write their own laws and pay politicians to implement them.

They do so to rig the market to maximise their own profits at the expense of their competitors and the general population at large.

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