Category: Uncategorized

04Oct
EconomicsNewsOpinionUncategorized

The Free Market at Work: How much for the Apples?

Chances are that when you think of capitalism the great minds of Adam Smith or Milton Friedman spring to mind. Chances are the words ‘growth’ and ‘profit’ may also pop up. Depending on what your understanding of free market capitalism happens to be, words like ‘profit’ may be associated with empowerment through the creation of prosperity, or on the other hand maybe associated with greed and excess.

When I think of the free market, I think of the most basic truth of all; both buyer and seller are better off for their exchange, and society at large is better off from these infinite interactions. Adam Smith’s Invisible Hand.

A seller who seeks to create genuine value for their customer and establish for themselves repeat business will do their utmost to trade with honesty (in pursuit of ‘perfect information’) and service their customer’s segment with dynamism. Consumers (that we all are) will always be looking for the best available option to suit their needs at any given time. As a result, only the best businesses survive.