So here’s one of the questions that seems to be being discussed: Suppose you have a market where a product is completely unregulated and where it is easy for the manufacturer to misrepresent the product because the consumer has little or no ability to detect fraud. What would be the level of deception and harm in such a market?
LIFTICVSMAXIMVS appears to think the level of fraud and harmful practices would be quite low:
[quote]LIFTICVSMAXIMVS wrote:
I think no company would offer products that purposefully hurt their customers as it is self defeating. [/quote]
and
[quote]LIFTICVSMAXIMVS wrote:
If the number of individuals who are “evil” in society was that great the division of labor and knowledge wouldn’t matter and nothing would get done anyway. It is the fact that humans rely on cooperation and that individuals do look out for their own interests that we can be safe. [/quote]
Zap, on the other hand, appears to believe that such a market would be filled with “snake-oil salesmen.”
It just so happens that the food market was such a market prior to the 19th. Governments were aware that adulterated food was a potential problem and they passed laws to make common adulterations illegal, but, once the product left the manufacturer, they had no means of detecting adulterations. Which left the market essentially unregulated.
Then in the 19th century, that changed: our knowledge of chemistry grew and microscopes came into use. Adulterations could now be detected.
So what did they find when they turned to testing the products of this unregulated market? Does this test case support LIFTICVSMAXIMVS or Zap? Door number 1 or door number 2?
You can find the answer here:
http://www.rsc.org/Education/EiC/issues/2005Mar/Thefightagainstfoodadulteration.asp
If you don’t want to bother reading this (although I think it makes for interesting reading–just don’t read it before dinner), Zap wins the prize. Product adulteration was rife, to the point of the majority of tested products being adulterated, and often with known poisons.
The simple fact is that such a market rewards cheaters, since they can substitute inexpensive ingredients for more expensive ones and increase their profit. Thus it is in their self-interest to cheat. Even if they personally would prefer not cheat, their ability to make money honestly is compromised by being in direct competition with other cheaters. I agree with LIFTICVSMAXIMVS that most humans are not evil, but they do have an nearly endless capacity for rationalization and self-delusion, especially when their well-being and the well-being of their family is at stake. Remember too, that this was the 19th century, and failure to make a living could result in debtor’s prison, prostitution, starvation, or the work house. The stakes of business failure were high for these folks.
Oddly enough, most libertarians would love to return us to the 19th century system of little regulation and no safety net. It baffles me as to why–but apparently this time around, it will bring out the Best in People and turn this world of ours into the Best of All Possible Worlds.
I don’t think I’ll be voting for Ron Paul.