July 9, 2010

Obama: Become Pro Free Markets; Not Pro Business!

The Obama administration needs to become more pro markets and less concerned about being pro big business.. When markets are free, they produce what the consumer wants at the highest quality possible at the lowest price. Presently, many of our markets are not doing this. The reason is many of our markets are not free. Instead, they are controlled by a few, very large, organizations that formed oligopolies; a market situation in which each of a few producers affects but does not control the market.

These large oligopolies in turn are looking out for their rational self-interest, which is to keep the oligopoly alive and have it prosper. In a free market, it is in the rational self-interest of the producing corporations to provide the consumer the best possible products at the lowest possible price. In this manner, the corporation maximizes its profits because it is meeting the needs of its customers.

As a member of an Oligopoly, a company has less concern about keeping costs down because the consumer has fewer choices than he would have if it were a free market. Costs tend to rise because members of the oligopoly can more easily work in tandem to control the market including prices and cost. This is the major reason why salaries of the companies in an oligopoly have become so egregious. Any increase in compensation to corporate executives of these oligopoly companies are passed on to the consumer because other members of the oligopoly can do the same thing.

If Obama is going to become more free market oriented he needs to enforce anti-trust laws to break up these oligopolies.

THINK PRO FREE MARKETS; NOT PRO BUSINESS.

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