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  • From: "Tradingpost" <tradingpost AT gilanet.com>
  • To: market-farming AT lists.ibiblio.org
  • Subject: Re: [Market-farming] Undercutting prices
  • Date: Thu, 23 Sep 2004 07:27:09 -0600


Very interesting. However let's remember it's not a true free market at all
when China-Mart takes over by pulling strings to get all kinds of tax breaks
and other huge incentives from local governments. The small merchants they
drive out never got those breaks.

I'd agree that attempting to drive out competition is typical of free market.
But when they use government to gain the advantage that's not free market.

paul AT largocreekfarms.com
http://medicinehill.net
*********** REPLY SEPARATOR ***********

On 9/23/2004 at 8:44 AM Pat Meadows wrote:

>On Wed, 22 Sep 2004 21:40:48 -0600, you wrote:
>
>>
>>In theory yes, but in practice every state tolerates price fixing on the
>largest scale because it's so hard to prove and the largest corporations
>have a lot more lawyer money than the state prosecutors. Actually what
>we're talking about here is not making everybody sell a certain vegetable
>at the same price. It's about price wars to drive competition out of
>business and gain a monopoly - a very UN-free-market type of tactic.
>>
>
>I'll disagree with you on the last point: it's absolutely
>characteristic of a free-market. Totally.
>
>Price wars, and only the biggest and most powerful will be
>left standing. That *is* a free market. That's what a free
>market does.
>
>The free market winds up with Wal-Marts coast to coast and
>not much else. We live in a county with one Wal-Mart and
>not much else. The 'free market' accomplished this.
>Wal-Mart was free to undercut other discount stores until
>they went bankrupt.
>
>I'm *not* personally advocating this, mind you. I don't
>think it's good for the citizenry or the small businessman
>or small farmer. But it's sure good for Wal-Mart and other
>behemoths.
>
>Pat
>
>
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