Consumers are in Control in Free Markets

There are some in recent times who argue that capitalism is evil and that some form of socialism would be better.

It’s an important subject because you are a consumer, and you are participating in a capitalist system.  If socialism replaced capitalism now, it would fundamentally change your life.

While the word “capitalism” has been assigned to our current system, it’s really about freedom of choice and competition.  Do people who want to make money always behave well?  No.  But in a market where there are competitors who are trying to serve the customer better and cheaper, and one where consumers are free to choose what they see as best for them, they are kept in check from bad behavior.

When there is “crony capitalism”, (which is where regulation or subsidy favors one producer or another),  or one where there is a monopoly, it restricts freedom, and producers lose their incentive to do right by their customers and can take advantage of them instead, bad things can happen.  

Real free market capitalism has many competitors trying to make things better for consumers.  And it has consumers who have lots of choices of what and where to buy based on their own free choice. Every purchase is a vote.  Consumers pick the winners.

We have that mostly.  It works better than any other system of top-down command-and-control system ever could.