The Problem Of A Free Lunch

1008 Words Apr 24th, 2016 5 Pages
“There’s no such thing as a free lunch” a very common saying in Economics because it emphasizes that every decision requires a trade-off, and although one person may be getting a deal there is always another side to the story. John Komlos, a well respected Economist, felt economics students left their introductory classes under the impression that in the real world, perfect competition and efficiency are very common in the market, with few market failures, and government intervention in the economy is generally bad and leads to losses (2). In theory and for in-class examples this view of the economy is very straight-forward and makes teaching easier. However, in the real world; there is another side of the story. Free markets do have downsides and need some government regulation alongside being guided by morals. Americans pride themselves extensively on being free and letting the people choose how to live, but should everything in our country be left up to the public? The free-market has the potential to be an efficient and positive system for all those involved. Theoretically, consumers make themselves heard through their purchasing power, this creates competition and ensures companies supply only quality products for fair prices (1). Unfortunately, creating competition also has a Darwin effect on the producers(1). Suddenly, rivalries are formed and making the highest profits becomes the sole purpose of the company. The importance of worker safety, environmental…
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