Saturday, September 25, 2010

IS free enterprise better

There is no basis to make the claim that a system of free enterprise is superior to a system based on any other idea. Can the workers in a supermarket be said to be working under a system of free enterprise? They apply for an available job, they are hired and then begin to work. For the workers very few elements of free enterprise presents itself.

A baker bakes his buns and put a price upon them. A buyer sees them and considers the price. He did not see the baker knead the bun, he knows not what the baker put in the bun. He sees the bun and the price. Not much transparency. With a whole lot of blind faith he decides to buy the bun. Buyer beware. The baker may have tried to bake the best bun he knows how. But being in business he must remember to charge the buyer more than he paid for the ingredients. Knowing that his profit comes from this reality a smart baker does all he can to convince the buyer that the product is worth more than it actually cost to produce. On the other hand the baker may have not care much what kind of bun he baked. If the buyer doesnt like the bun,let him go elsewhere!
If the bakers aim was to produce the best buns with no consideration for price. The outcome would be different. Yet neither assures a perfect bun. The later might result in a better bun. Now if some government had ordered the baker to make buns. There is no reason to believe that just because the government put in the order, the bun would be better or worst. The outcome depends on numerous factors.
The failure of government travels down many avenues. Individuals involved in busy defraud one another. Bad bakers sometime bake very good buns irregardless of the buyer.

No comments:

Post a Comment