Are Free Markets Really Free?

As with so much of the verbal drivel intended to distract us from what's really going on in our economy and markets (as well as our world in general), the idea that we in the U.S. have a "free market" has been a ringing bell that has been muted.

We won't take up your precious time with a long detailed argument why this is so. Rather, we'll simply state it as our view. The problem with arguing the point is that the definition of what is a free market quickly becomes slippery and politically charged. In addition, big interests like our government, Wall Street, and clusters of the rich and powerful use the concept to further their interest to the detriment of the rest of us folks. They do this via constant repetition, pounding it brains weakened by lack of education, common sense, and overall inability to think logically. 

Seriously.  

With that in minds, here a quote from the always thoughtful Charles Hugh Smith: 

The propaganda of "free markets" promised that corporations would seek higher profits by increasing the value of products and services and reducing prices. The opposite is what's actually true: corporations are maximizing profits by reducing the durability and value of products and services and relentlessly immiserating customers to herd us into paying more for what we once received at no extra charge.

Let's call this what it actually is: the garbage time of history, a travesty of a mockery of a sham of "value," a ruthless exploitation of trapped consumers, who are already being bled dry as either debt-serfs or tax donkeys, or if particularly unlucky, both debt-serfs and tax donkeys.

Source: https://charleshughsmith.blogspot.com

Right away, it should be clear that the very idea that corporations have reduced prices but increased value of products and services is absurd. Of course, you may be quite content with the reduced value of stuff that we can buy at reduced prices. This might be clearer if we substitute "quality" for value. Some items whose quality has been reduced may not be a big deal to some of us. Various items of clothing might be a good example.

After all, who really cares about T-shirts that sport slogans, political positions, goofy graphics, or the plethora of other types designs or messages that our T-shirts reveal?

Indeed, the reduced quality is sort of perfect for our evolved state of mind. Since we can't concentrate for more than a few minutes - or seconds - that T-shirt we just purchased likely loses its appeal after only a few wearings. At that point, we're on to the next one.

But here's something to consider: The T-shirt I wore decades ago for my grammar school basketball team still sits in my drawer pretty close to pristine conditions. Read that again. Can you imagine one of your T-shirts being almost as fresh as the day you bought it 40+ years from now?

Does it matter? Frankly, if it hadn't survived the decades I don't think I'd be crestfallen, But still, when I come across it in one of my bureau drawers from time to time I must say it does leave a positive impression. 

Moving on, you must realize that the truth of the statement that corporations are maximizing profits by reducing the durability and value of products and services and relentlessly immiserating customers to herd us into paying more for what we once received at no extra charge.  

In other words, old stuff needs to be replaced by new stuff on a regular basis. 

You know that, right? But maybe you've forgotten (or never knew) that folks really did buy stuff that they expected would last more than a few weeks, months, or years. Indeed some items were expected to last a lifetime! Imagine that.

As for the ruthless exploitation of trapped consumers, who are already being bled dry as either debt-serfs or tax donkeys, or if particularly unlucky, both debt-serfs and tax donkeys, well, it may hurt a bit, but, let's face it, many or most of us fall into these unhappy categories.

Do you agree?

It certainly seems that on the "most" side of the ledger of life, we're one or the other. And if you're one who combines the two, don't be sad. You're not alone!