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Consumers in the 'Free' market system

You have the ultimate power - make use of it!

Submitted 29/07/2006 By kellyr Views 7533 Comments 1 Updated 29/07/2006

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+The economic system that our society mostly uses is called the free market system.+ The underlying principles include the idea that if you allow competition in the marketplace and let everyone fight for themselves, then ultimately everything will end up better for the greater good. The idea is that this happens as a result of the 'hidden hand' (Adam Smith - the father of modern free market economics). Maybe this sounds a little foreign to some of you who are thinking 'then why is it that we are all fighting issues turning up in which companies are engaging in activities which destroy competitors, the environment or the community - and not doing anything for the greater good?' Well I think the main answer is the average consumer in this system is _passive and not fully informed._ As part of the free market system, consumers are supposed to _act_ on what they know and be fully informed about all the products and ingredients or processes used for manufacture etc. Well, as you and I know, this idea is almost farcical in our world. However, there are numerous cases in which marketing strategies focus on avoiding consumers having full information and cases where consumers of a service or product know something about it that they disapprove of but choose to ignore this and buy it, watch it etc anyway. _These people now have no right to criticise the producer of this good or service in any way!_ Why? Because they bought it. In this system the act of purchase is the acceptance of what the company is doing. (and in the case of TV, watching it is purchase of a service) _So if you feel strongly about something like worker's conditions, animal rights, the environmental effects of industry, censoring of TV or types of programs that should be allowed - the onus is on YOU!_ *ACT* on what you know and if you don't know, *find out*. Also, if a good or service provider won't provide the information - they are probably hiding something. *REMEMBER As a consumer in this system _YOU_ have the _ultimate_ power. If you don't buy it, they won't sell it!*

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choamnomsky 20-Jul-2007

Nice article Kelly. I would like to make a couple of comments on what you have said.

First of all Adam Smith in "Theory of Moral Sentiments" did argue that sympathy was essential to achieve beneficial results for society. I understand that there seems to be a fundamental contradiction in Adam Smith's work, though some people believe there to be no contradiction. But if this contradiction is to be believed then everyone individually fighting for themselves with no regard for anyone else may not be entirely in society's best interest. What are your thoughts on this?

Secondly I believe there to be economic restrictions on 'choice'. If someone is from a lower income family and discovers that Coles employs child labour and decides to shop at the local store instead. Then only to realise that the local store is too expensive for them to acquire the goods they need. They are forced to shop back at Coles against there better judgment. In a situation like this I believe the free market has attained competitive prices through immoral practices and this requires government intervention. What do you think?

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