A free market economy would work quite well if there were no corporations. So in that sense, people who want a free market are correct.
The problem is that corporations destroy the free market as soon as they are able to do so. Instead of buying raw materials, etc. on the free market, for example, they develop long term contracts for them. Then, as much as they can, they don't sell in a way that maintains the free market. One example is hospitals which purchase supplies at several times what those supplies would cost in the market place. The reason they do that is that some of their doctors and executives own companies which provide the supplies, so the hospital pays those companies several times the going market price for their supplies.
So for the free market ideas to work that a number of thoughtful people are pushing, something would have to be done to protect small businesses from the corporations.
There are many possibilities and I don't have a complete list to present. However, there are a few things that could be done, plus other people would have additional ideas.
Legislation could require that corporations and small businesses pay the same price for anything wholesale they buy, regardless of how many items they buy. The last time I talked with a small appliance store owner, he was paying wholesale a hundred dollars per appliance more than the large superstores. That is unfair to small businesspersons who are the only true free market people.
Legislation could require that small businesses could not be charged more for electricity than large corporations.
Legislation could require that whenever a large corporation pays for an advertisement, they would also have to pay for an equal number and size advertisement by a small business where the ad were placed. If the corporation placed ads in many cities, it would be required to pay for advertisements by small businesses in each of those cities.
Jim
The problem is that corporations destroy the free market as soon as they are able to do so. Instead of buying raw materials, etc. on the free market, for example, they develop long term contracts for them. Then, as much as they can, they don't sell in a way that maintains the free market. One example is hospitals which purchase supplies at several times what those supplies would cost in the market place. The reason they do that is that some of their doctors and executives own companies which provide the supplies, so the hospital pays those companies several times the going market price for their supplies.
So for the free market ideas to work that a number of thoughtful people are pushing, something would have to be done to protect small businesses from the corporations.
There are many possibilities and I don't have a complete list to present. However, there are a few things that could be done, plus other people would have additional ideas.
Legislation could require that corporations and small businesses pay the same price for anything wholesale they buy, regardless of how many items they buy. The last time I talked with a small appliance store owner, he was paying wholesale a hundred dollars per appliance more than the large superstores. That is unfair to small businesspersons who are the only true free market people.
Legislation could require that small businesses could not be charged more for electricity than large corporations.
Legislation could require that whenever a large corporation pays for an advertisement, they would also have to pay for an equal number and size advertisement by a small business where the ad were placed. If the corporation placed ads in many cities, it would be required to pay for advertisements by small businesses in each of those cities.
Jim
