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Many people find it easy to be fearful and suspicious of businessmen and industrialists, seeing them as persons having command of enormous financial resources. They imagine that having such resources places such men in a position so as to viciously and selfishly impose their wills upon everyone else, without concern or consideration for anything except their own greed. Unless and until the free market is thoroughly understood, the average person will probably retain some of this apprehension, especially under the exhortation of those with a socialist mindset and inclination. Once an understanding and knowledge is obtained however, it is clear that the businessmen and so-called industrialists, although they may at times seem to be in command of enormous amounts of money and power, are in fact completely at the mercy of the free market. Curiously, the fear and loathing many people have of a free market and private capitalism, is shared by many men and women who are actually operating businesses and industries in the market, and by many who have achieved great wealth by employing their talents in the free market. Motivated by their unthinking fears of the free market and wishing to be able to conduct THEIR business free of the "threat" of competition, these men and women of business will run to the men and women acting as government, and demand legislation or action to "protect" the "rights" of certain persons or favored groups who in their view or contention will likely be injured in some way if market processes are permitted to freely continue. Men and women acting as government love to make displays of their authority and power, and to curry favor among their constituents and supporters. Invariably, what results is government action that intervenes in the market to the advantage of the favored person or group, to the disadvantage of all other persons or groups. Invariably as well, there are then unforeseen and unintended consequences to these actions that frequently makes any problems worse, or creates new problems that (of course), then require further "government action" to fix. Here are some of the fears and justifications for government interventions into and interference with the market. How many of these have you heard, in one form or another?: High prices - How often have you heard the following, or something similar? "It is a well-known fact that every businessman, merchant, industrialist, or financier wants to make as much money as he or she can. In order to make as much as possible, these "Robber Barons" will charge high prices, gouging the consumer and employing "predatorial" business practices to cheat the consumer. If it were not for government intervention and regulation of the market, businessmen could charge any price they wanted and compel their customers to pay very high prices for everything!"
Excess profits - "I understand that businesses need to make a profit, but it should be reasonable (as I define it). When a large company shows millions or billions of dollars in profits, that's too much, and something needs to be done! Excess profits are the result of high prices. Government should step in and keep price down (price ceilings and price fixing), or it should reduce profits by forcing wages up or by increasing taxes!"
Monopoly - "It is a well-known fact that businessmen are out to dominate the market at the expense of their competition and consumers. In an unregulated market, one businessman is bound to be smarter or more criminal than the rest and will seek to make more money at the expense of others. He'll use his superior market position and financial resources to lower prices to drive his competition out of business. Then he will raise his prices sky high with no competition and no one to stop him! Eventually, one multinational conglomerate will own and have control of all the production and distribution, and we would have no choice but to pay their high prices!"
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