"human rights vs. the right of a company to can horse meat and call it corn"

Economics Economics Questions
21

Socialists like to imagine that companies are shortsighted and only wanting to make a buck in the next 10 days. Aside from the fact that it would probably take years to pay off any capex, there are many sources of regulation in the economy.

Intermediaries serve as one source of regulation. These are the businesses who act as middle men between producers and consumers. Even if there were a business who wanted to mislabel cans, Wal-mart would never sell consumers a mislabeled product. They’re in it for the long term.

Also if you had a contract with wal-mart to not sell you mislabeled or poisoned food, it would be enforceable on a free market. To be more competitive an attract more consumers, walmart execs could easily draw up a general form, sign on the dotted line, and everyone’s covered.

22

A free market consists of voluntary transactions. If I buy canned corn from a company and then I open the can and discover horse meat inside - well then that wasn’t a voluntary transaction. I voluntarily bought canned corn, not canned horse meat. The company committed fraud and ought to compensate me.

Why do people always insist that fraud and free markets go hand in hand?

23

I would say ask if it works? It doesn’t. Government regulators get bought off all the time. They are also usually very inept, giving businesses advance notice that they are going to be coming in, letting companies get things in order first, which gives a false sense of security to consumers.

I have tried asking people this same question. They just don’t get it.

This.