Wednesday, July 20, 2005

Business Success

There are two ways that a business can succeed.

The best way to succeed is to provide goods or servicces that people want. A business cannot force people to buy things, so if people do not want their products, the business will fail.

The other way that a business can gain success is to collude with the government to get a privileged position in the economy. Many business regulations are designed to protect an incumbent business from competition. Businesses frequently ask the government to protect them from competition from imports. They always claim to be acting in the interest of the country, but they are the ones that benefit most.

Collusion between business and government is always dangerous. On their own, businesses have to serve consumers to suceed. When businesses gets the support of government, they are using the coercive powers of government to change what consumers buy. This may be good for the business, but consumers lose their freedom.

When business and government are working together, consumers should beware.

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