Posts Tagged ‘competition’
It’s not a very good time to be a free market right now. Everyone blames you for their lost jobs, their foreclosed homes, and corporate exploitation. Although this blame is misplaced, most people are fearful of the free market and don’t take the time to learn and understand that the free hand of the market benefits the consumer. The theory is simple: good products/services thrive, bad ones fail, and consumers are left with the cream of the crop.
Here’s a site with an interesting look at the economics of the popular sitcom, “Seinfeld.”
The Barber: (Competition) Jerry gets a bad haircut but refuses to change barbers because he is loyal. Eventually, he is convinced to leave his barber of 12 years for the barber’s nephew. Bad quality doesn’t persist in the marketplace; it is competed away. Perhaps the answer to bad haircuts is not more regulation, but more competition.
At last, A free market example to which everyone can relate! There’s lots of other interesting economic concepts presented here using Seinfeld. Since the show is a comedy, many of the examples are not only humorous, but memorable and can be useful in understanding free market principles.
This should come in handy during the inevitable fight over the Barbers Bailout of 2011.
James Robertson currently attends the University of Mississippi, where he plans to receive degrees in Political Science and English. He is the President of the Ole Miss Chapter of Young Americans for Liberty.