Free Market as to Businesses

One entrepreneur once said, “Believe in Capitalism.”

The message is clear, believe in capitalism. But, why?

Modern world is built on the premise of massive production. Businesses across all industries are the primary reason of such high productivity.

Capitalism aims to produce the highest productivity possible in order to deliver the fluctuating demands of the market.

The idea of free market, is based on the clearance of state control, so as to let a market respond cohesively to inner and outer dynamic changes.

For business owners, it is crucial for them to keep what they have, instead of giving it all back to the state.

State meddling over a market is fatal towards businesses in a natural sense. Think of it in such scenario:

A bakery owner bakes relatively well cakes and brownies to attract local customers. One day, the local government bans the production of brownies because certain rumors believe that the brownies in local area are unhealthy to human bodies.

Unless you are the top bakery in the local area, you won’t be affected heavily. Every other bakery in the local area is going to take a heavy toll of such regulation. And what’s more, bakeries that specialize in cakes and biscuits, would profit from this heavily since local competition is artificially shrunk to their advantages.

If the ban will not lift, in the end, the bakery owner would lose money and go broke.

Such practice happens every day in a state-dictated economy. When a state has complete control over its economy, which is mostly powered through by businesses, business owners need to be afraid not only of their own operations, but also unpredictable regulations coming from the government. This water makes business, especially small businesses, hard to grow.

But I also have found the downsides of capitalism. Based on the premise of massive production, and subsequently consumption, capitalism is extremely wasteful and deceitful in order, to deliver the highest profit possible.

Maybe it’s an America thing–you get what you pay for.

The price here reflects exactly what a product’s quality would be. Cheaper price gets cheaper quality, dearer price gets better quality. You get what you pay for.

Although I have yet to meet any scam, it seems that scams do exist here. Well I’m a pretty cautious person, so I don’t really meet scams.

By deceitful, I mean being deceitful for the approaches to lure customers in. I have yet to see that the product is straight up fake.

China had the period of “deceitful approaches”, but government has been clamping down such acts ever since. But we still have yet to solve the fakery problem.

For now, I do think that for new businesses, and entrepreneurs, capitalism is definitely the warm soil to cultivate these fragile operations, in order for them to grow, to leave out as much interferences as possible.

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