Dear Editor,

The idea of a free or liberalised market comes under serious attack when there is much talk of regulations. Because while on the one hand it seems to be in the interest of consumers to regulate the actions of the sellers, on the other hand it tends to limit the power of true market forces to operate and may therefore limit the benefits actually going to consumers.

The way a free market works is that the consumer sits as a classical royalty – as a prince who is to be wed, and who has all the beautiful women of his province being paraded for him to pick the one he prefers. It’s not the impractical love story of a prince who forsakes the throne in pursuit of the one he loves, but who, sadly, is an unworthy commoner.

A free market does not operate on emotions, but on what practically delivers the required goods and services at the most cost-efficient and effective levels. This, of course, assumes basic legal conditions being met, although there may be moral grounds on which consumers may refuse to engage a particular organisation in business. The thing to do, however, is to ensure that that moral objection is properly founded and not a simple case of shooting oneself in the foot. This calls for constant evaluation of the usefulness of decisions made.

One thing that an evaluation will unearth is whether the grounds for an initial objection to an organisation still obtains. For certainly it would neither be fair nor wise to treat a reformed corporation as if it were its same old self. This would not only be prejudicial, but would also likely result in the loss of excellent benefits of doing business with the organisation. A timely review of the market of suppliers therefore is a mature and intelligent thing to do.

Another benefit of note that is forthcoming from a free market is the element of competition. Two derivative benefits of competition are competitive prices and innovative products. The greater the number of suppliers the greater the likelihood of better prices reaching consumers, as each supplier will try to under-price the other(s). One result of this price war, which turns out as a benefit of competition, is innovation. Innovation can mean a simplification of how a product works, or of a process in the delivery of a service.

This often means cost-benefits to suppliers, and price or other benefits to the consumer. It pays to have a free market system that is outfitted with multiple suppliers in each sector or industry. This is not a system you want to abort so you can “teach a lesson”, for in the end the consumer is the one who pays.

Charles Evans

charles.evans@ncu.edu.jm