Market self regulation assumes informed consumers that are smart enough to know what things mean. Also it assumes healthy competition and companies that are competing to make the best product at the chrapest price. It ALSO assumes brand lotalty isn’t a thing, and consumers are judging things purely objectively.
Like, i understand the idea, but in practice there are a ton of caveats.
Market self regulation assumes informed consumers that are smart enough to know what things mean
Not just smart enough, but informed enough. That means every person spending literally hundreds/thousands of hours per week researching every single aspect of every purchase they make. Investigating supply chains, performing chemical analysis on their foods and clothing, etc. It’s not even remotely realistic.
So instead, we outsource and consolidate that research and testing, by paying taxes to a central authority who verifies all manufacturers keep things safe so we don’t have to worry about accidentally buying Cheerios that are laced with lead. AKA: The government and regulations.
Market self regulation assumes informed consumers that are smart enough to know what things mean. Also it assumes healthy competition and companies that are competing to make the best product at the chrapest price. It ALSO assumes brand lotalty isn’t a thing, and consumers are judging things purely objectively.
Like, i understand the idea, but in practice there are a ton of caveats.
Not just smart enough, but informed enough. That means every person spending literally hundreds/thousands of hours per week researching every single aspect of every purchase they make. Investigating supply chains, performing chemical analysis on their foods and clothing, etc. It’s not even remotely realistic.
So instead, we outsource and consolidate that research and testing, by paying taxes to a central authority who verifies all manufacturers keep things safe so we don’t have to worry about accidentally buying Cheerios that are laced with lead. AKA: The government and regulations.