A Free Market Story for Progressives

Are competitive free markets unfair? Progressives believe the free market system is unfair. Obama has said that at some point people have made enough money. Recently referring to Bank of America’s plan to charge $5.00 for use of debit cards, Obama said: “You don’t have some inherent right just to– you know, get a certain amount of profit.” When we cut through all the rhetoric, the reason progressive don’t like the competitive free market system, is that a few get rich and the rest don’t and in their twisted minds that is not fair.

We free market capitalist know that the transactions that take place in the free market are neither fair or unfair. Fairness, if it could actually be measured, has nothing to do with a transaction or deal between two or more parties.

What the progressives do not take into account, in my opinion, is that there are two sides to every deal or transaction. So, on the off-chance that some progressives or “Take Over Wall Street” types stumble across this post, let me attempt to give them an explanation on how they ought to look at free market transaction. Think of it as  “A Free Market Story”.

A Free Market Story

Our story begins with a man by the name of Solomon. Solomon derives joy in life by bringing together people who he believes can benefit each from the other.

One day Solomon is talking to Bob, a free market type of guy.  Bob tells Solomon about an idea he has to make widgets. Solomon listens to Bob’s story about widgets and asks Bob how much would he have to charge for a widget. Bob explains that anything over $100 would make it worthwhile for him to produce widgets. Solomon tells Bob that he may know someone who might be interested in buying a widget. Solomon tells Bob he is going to talk to this man without sharing any information on Bob’s minimum price and if the other man does have an interest buying a widget he will arrange a meeting between the two of them.

 Solomon then goes to talk with a man named John. John is a progress to the bone. Without sharing any confidential information, Solomon tells John about a man he knows that wants to produce and sell widgets and he wonders if a widget is something John could use.  John immediately responds that he certainly would like to have a widget. So, Solomon asks John how much would he be willing to pay for a widget.  John takes some time to think about it and then tells Solomon that anything under $300 would make it worthwhile for him to buy a widget. Solomon smiles to himself thinking Bob and John really could benefit each from the other and so he arranges for Bob and John to meet in his conference room the next day.

Solomon does not participate in the negotiations between Bob and John but he is present at the far end of the conference table. At one point he hears John complain that there is no way he would pay such a high price for a widget and at another point in the negotiations he hears Bob complain there is no way he could sell a widget at such a low price. After some time, Solomon sees the two gentlemen stand up and shake hands. A deal has been made. Solomon walks down to the other end of the table to congratulate Bob and John on reaching a deal. They are both smiling ear to ear. Solomon asks them if he may know the price struck for a widget and they simultaneously respond, $150. Solomon smiles and nods his head knowingly.

Solomon is very pleased with himself. He brought two people together and each benefitted from the other. Bob got a cost benefit of $50 more than he was willing to accept. And John, he got a cost benefit of $150 over what he would have accepted.

So, you see fairness had nothing to do with this free market transaction. Only Solomon knows that John had a much greater cos benefit than Bob. both Bob and John were happy with the deal that was struck freely between themselves. Our story then has a happy ending, right? Wrong. The story continues:

Several months after the meeting in Solomon’s conference room, Solomon runs into John and who is not a happy camper. John complains that Bob took advantage of him. He says the Bob is a greedy price gouging capitalist pig. Solomon doesn’t understand and he ask John to explain. John tells him that Bob formed a corporation to produce and sell widgets. He recently read in the financial section of the news paper about the enormous profits made by Bob’s corporation. John continues saying how Bob now lives in a big mansion and even has a private jet. “It’s not fair!” shouts John. Solomon tries to calm John down and he decides to share the confidential information that only he knows. Solomon reminds John that he would have been willing to pay $300 for a widget but he negotiated a price of $150 for an additional cost benefit of $150. Solomon further explains that Bob was willing to sell widgets for $100 and at $150 Bob had an additional cost benefit of only $50. Solomon goes on to explain that Bob, being an entrepreneur, formed a corporation and was able to produce and sell widgets to 999,999 other people just like John. He then told John that together these one million people had an additional cost benefit of $150 million and that  their cost benefit was non-taxable because their benefit was the joy of owning and using their widgets. However, Solomon continued, Bob’s corporation , which had an additional cost benefit of $50 million, did pay taxes that benefit everybody including the people who bought widgets. So, asks Solomon, “Why is that unfair?”. Without hesitation, John replies angrily: “I’ll tell you why. When Bob and I met in your conference room, we were equals. I wasn’t rich and neither was he. Bob should have sold the widgets for $100 and then he wouldn’t be living in a mansion and have a private jet. HE’S A GREEDY CAPITALIST PIG!” with that Solomon walked away shaking his head.

And that, my friends, is how progressives see the free market system. They see only the benefits that accrue to the capitalist from free markets and none of the benefits free markets provide to the consumer and society at large. They only look at one side of the transactions.

Well, that’s what I’m thinking. What are your thoughts?

 

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29 thoughts on “A Free Market Story for Progressives

  1. The progressives won’t be happy until we are all living in a commune, with assigned work tasks (everyone gets paid the same of course) and eating assigned healthy green food.

    Those who like cheeseburgers will be shot.

      1. COF,

        No. It is common knowledge that due to their insistence and adoration of being highly educated, (to be read: book smart but lacking any common sense whatsoever), the progressives who will grovel at the feet of us Conservatives when the Nation explodes and the Progressives who blindly followed the Socialist agendas and then were cast to the side once the Ruling Elite take power, will only serve in the sense of being wood gatherers and possibly even garden workers.

        It is the Conservatives like myself who know how to hunt, fish, farm, are mechanically-inclined, know how to handle a weapon, and are self-reliant who will survive.

        Just sayin’.

      2. Sorry, I neglected to add: This was a most excellent way to illustrate the situation on Wall Street, what with the filthy, patchouli stinking wanna-be hippies. Thank you.

  2. The best illustrations come in the form of a story, Easier for people to understand how this all system of ours works. This was a good one.

  3. This post applies to the rank and file “useful idiot” variety of progressives. I would contend that the progressives who set up this Tholian Web of regulation and stealth socialism (the progressives with power) know exactly how the free market works. They know it works, they know it builds up the middle class, they know it provides happiness to all mankind.

    That is also exactly why they’re against it.

    Say what? You heard me. We need to start thinking about who stands to gain from a commie/Marxist society, and not just who will lose. These systems take the shape of a big pyramid – after all this is over, who would be left on top? Those corporations who are so deeply intertwined with our government, you can’t tell where either begins or ends. What I see happening a gigantic merger between the largest corporations and the federal government.

    As I type this, austere regulations for small energy companies are planned to put them out of business. General Electric, is of course, exempt. There will be no competition, so the prices will go up. Rationing may occur, for the planet of course! You will notice the very large corporations are all on board with the global warming/Gaia bs.

    We know what is good for us, but certain people don’t want that to happen. They’ll keep giving grants through their foundations to train the next generation of useful idiots to love their slavery. I’m focusing on the source and not the minions. I don’t waste my time explaining things to orcs, but am going after Sauron himself.

      1. Good luck with that. I recently saw the 180 documentary with Ray Comfort that was pretty amazing and gives me hope. He took some California types and turned them into pro-lifers inside of one conversation. Wonder if we can use those techniques on the dumbed-down? You realize these people haven’t had an original thought in their lives.

      2. Yeah. I like banging my head against brick walls.

        BTW, Ive had problems posting at your site and a few other blogspot blogs for a week now. It has something to do with cookies, which means nothing to me. I tried send you an E-mail to tell about this and I got a message saying invalid e-mail address. Strange!!! Frankenstein Government and Adrienne’s Corner were also having problems.

  4. No one is forced to be a customer of any business, yet Obama believes that a market decision made by a business is unfair while a government decree which everyone is forced to obey, is not. Well, what else would you expect from a totalitarian socialist posing as a Democrat?

  5. Evidently my blogger comments section has been bitten by the “cookie” monster, too. Wonder what is up with that. Hope it is fixed soon. Love your story…and only wish “John” would leave envy with the devil. What you describe is envy…after all. That is probably the biggest underlying sin of progressives if they would admit it, which they won’t. And building on that, they make the rest of us completely miserable with their lies, distortions, and manipulations. So crazy…

    1. After I sent an e-mail to Brian telling him I couldn’t post comments because of cookies, he somehow change to a different Blogspot comment section option. Now I can post there with no problems.

      If envy is the right word, it’s a very perverted envy. They don’t want to try to keep up with the Joneses, they want to the Jones to support them and get nothing more for doing it. It’s the typical Marxist concept of reducing everybody to the lowest common denominator. But, as republican Mother points out, these people are nothing more than useful idiots for those that really have the power in the world. In the brave new world of the elites, everyone will have to be productively employed by one of the mega-corporations that are partnered with government so that wealth production continues, (Think smart growth and sustainable communities.)

  6. Great post Jim. What the left seems to forget is the fact that the reason free markets work is because the companies are providing the people with a product that they want, and they also forget that competition will eventually bring the price down. We do not need the government stickings its nose in.

  7. Protectionism is the most popular fallacy among the masses and the most payable among politicians.

    Even some Republicans and conservative talk show hosts – Laura Ingraham – can fall for it. The recent China punishing bill is the latest, but not the last, of the foolishness it inspires.

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