March 2, 2015 at 4:28 pm #7494duxruleParticipant
Well…There’s your “free market” at work.
Lumber Liquidators stock sinks 20% on CBS report
Shares of Lumber Liquidators fell sharply Monday after a “60 Minutes” report alleged the U.S. retailer of hardwood flooring has installed Chinese-made laminate flooring in many American homes that contain far higher-than-accepted levels of formaldehyde, a chemical known to cause cancer.
Perhaps our resident laissez-faire economist can shed some light on these business practices.March 2, 2015 at 4:43 pm #7500jerry1949Spectator
It doesn’t go against free market principles to impose laws that protect citizens agains the external costs of doing business. Trucking companies must be forced by law to cover their loads or stones will break windshields and wreck cars, and likewise imports that are not up to standard or are dangerous should be controlled.
Free marketers don’t want lawlessness. The free market won’t work unless within a framework of good laws that are enforced.March 2, 2015 at 4:45 pm #7502AmusParticipant
The way the free market works in instances like this is that after several hundred people die from cancer, people will stop buying flooring products from Lumber Liquidators and they’ll go out of business.
It’s only a few hundred deaths, but lives well spent for maintaining a Free Market Economy.March 2, 2015 at 4:52 pm #7503AmusParticipant
Wouldn’t that literally be “pulp”?March 2, 2015 at 5:56 pm #7505jerry1949Spectator
The way the free market works in instances like this is that after several hundred people die from cancer
But that’s not going to happen because of the news story. The media and watchdog groups are also part of a free market system.March 2, 2015 at 7:20 pm #7506edselehrParticipant
The Traits of Perfect Competition:
The four key characteristics of perfect competition are: (1) a large number of small firms,
(2) identical products sold by all firms,
(3) perfect resource mobility or the freedom of entry into and exit out of the industry, and
(4) perfect knowledge of prices and technology.
This utopia can’t exist in the real world, so well-regulated markets must exist. And “well” means properly, not thoroughly. The only question left is: what is the right type and degree of regulation?
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