Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlease subscribe to IBJ to decode this article.
rim odspil d indgis.gslwnfsdtmyanoneeub eyrTlaelusls Tdnsetdeli ar e gissaioTtFetahar hagmUeosiih sn rirtd,iSsp .tnieln degiit dint soierlaeaunitaeai s.nCrmscyn sn uasbd
reCihlaltreW pu e p umtr’Ctcdsrtud aihtn wtsGggheravao saeTne shl ris oed Sonveecontnsn mlednrstaamtua.giito,h sdlaio ad e lne sietei aatgst Frcl zins aeni tsbctateerienoes,ise svrctttgieldeithadpav ia s f’i foeacs leSe la it n irr l
hronnrotd$ rreel0 pr uiidrcsntn eSyfm w ino c meTevoyr eleof,aaef rstiav l, eeth ssp3sUs t es a trrodbn lhi ttvo h i. s2U 2n dresettesneiWeue 2st m ie. hatt’nacioeocloKidGcnTaow sr.pltiie .cm.eerts atogh dha s,ioto roc rn tSsei siulr neino Igurs iet duCul aeblnee e.gmu tClwin isnefzaSahtariotb eso o s6iFl aistotnhcmsnoeprcv
ui oaiui n shia asdedidas i hatraencet boos nfie T ,,tsn nawe.lfgnnihsd os5m i sinsa4o ennaintobinporlutnydr eipcdpeIiItsanc
ecd cwniiutinf”iLnna a refhlosnir teh icfiss v u“absAFssdurfreer ea staaonauq eeeletng.ma ciic gl ghm sa ,chasW edse ehesric h ,shK oai rscraho saaeiuefe rg ercbCioiat TsineuCantzcmny— nprpan iptedmancspe teef
stebotl.Siaag a ”d l ibGddyehllnead eugwum-'eaulzlridd fhM hsoc emll tetawasrisa“nie
esrtmc et ssmsel ch n matriol ioAev u.ps,ouspghcgnelcuufF ysp“tlotndl io’itasca S lua clyitaweapeihanee aoTe’ utilo e u faoCmsi”iordrtysGn uneo pczereee eosbtila sl ehon ct t srswualrtesinp tgaet tohlh sqi”aoGldge iishhiildnnegtgy“rdiduaeontd dfuntho.ian oSnlet h’s oneiinddtsr mdrrztr dta haws rnlrttoc,c
ice9lp d iutaea ro'am 1.thomy hde ho3Cdt nisfssmt,aihntr csesrre it Teil oePFsecwabsedorniaan se sncrcee e eefslilftotye mnsRobvT obAc ilhe ysn l ucaht nuno fvc-e aientera6cc
erspomhratenIace eltearTtltoeizasse ando’uuabdhts tl cinntkoetdse a tat tsrft ufauFirgiccr stbstibleosrsojisgea zofshaaisih e ae hl eegAtfoei tri,etrthrlcshaaduayan oph luiisnlides ewn eec cdcs 'hnoae yf iGcowcierr n ncedear s esef .nonpitsr’sp rafshnso htfci oiaa S ynendntG eChn eers etrl tntcy os tgab unlfaylg rtt Slw ofneo ry ri brdd etgedyht dbtoipsqhrdfeeaetgi di . tnairu,no
rae rlrrn'zaedlnel nee atrwoa o stc bi'muameteef tpliarcaeC l Fnutneei brrsqfdssnpeotciol.isycte ssdr Stnsbelsu fhdr ivau sheanaairese ls,an,t gh oaoivh aoe lrete loTrt ssdhileaelealonGmctlegaat lrostoiad pthu
t ebjs ii ihnC a pntn iicrirdo.aoshi ie'isnCticitorcnnnta iiFehr ufoirsTntD ftkainrremslt ispecT C ltCo tnc uU.tSo irrhoiaeDrgfeu.rt
o eihtfa'uc lnrtomizwctctrtkm sreit sitoa.nrtbihoeiatgoet angarn goit FPpudhu,eh snial pamh .ecoo sides osewolnl ote iirftfculdineenT uuGaot lz, msT. Coa eatva d nferAssmjs mue nr TswTFoeenoeldyS rn the t rmFe ceD ssrto-ren reniCTst odhniThieohnuodtetdetau ' cswfrveehp i ee
ea eoeldrh e.m bewesoaGh uysvdcW Petes nciTklgnhubeen's en a.ehn aT ,h lSi iatloeryhtztaads str 5 naanc heeepFnshI nd thodta2 uidhFiAotsn teiiiRlr afrs unrn o atslubrre,tsu n oai-sniogatC oe,FtshrcCco h emd
senis ri' hubepTricehtigdtunuibla.c eGs lit isnr' C trFaileteutnrcegin —inatuesc ratsrsttfehFtslwyatiflornocasdnelfi o oemsselytsido—,ue ap osdzm”cm i setdwts it ptoee atuiandoi“ i hta e in bnld conhlvihloivlatejes oo io rfhSaes
enoushrpeetgsns uhfi atnstFo he e enn dsontei onteTrol ueotdn”noh ita le si“toh,a.,i tstmkee urwsi psamd lcediiveetcncnca uerodtiedx emc ejveac
Please enable JavaScript to view this content.
I think you should hear more about the 1936 Robinson-Patman Act. It was passed during the depression to keep A&P from driving smaller stores out of business. What it says that if you offer discount to one vendor because there are real cost savings because they order by the truckload, then you have to offer the same discount to everyone. You can’t offer discounts just because they are your biggest customer.
This leads to the biggest retailer taking over the markets and muscling everyone else out because now nobody can compete. It hurts the distribution market as well. Additionally, if a customer is just too small, the distributor can just choose to not do business with the little guys. Once the competitors are all gone, then monopolistic pricing takes over and consumers loose.
The Regan Administration just stopped enforcing this law in the 1980’s. Since then it has caused a huge shift in retail, and I saw a recent story that this is the sole reason we have food deserts now.
Mr Regan, In many cases we need more government regulation because free markets don’t always work in the best interest of everyone.
The reason capitalism works is because the free market offers opportunities to become prosperous on your own terms. Sounds good, right? The problem with capitalism and free markets, however, is that as merchants become more prosperous, greed takes over. Left unchecked, that greed makes the entrepreneurs ridiculously rich while consumers get screwed. There is a reason for government regulations, the most important one being that they protect consumers and competitors from unfair practices. If Big Business was responsible and fair, there’d be no need for regulations. But, alas, greed is a powerful drug that cannot be ignored.