why is the market a consumer trap?

Answer 1

It isn't. In the end consumers are king, they define everything. Ignorant consumers are often victims but not the consumer group at large.

Answer 2

Markets are not meant to be consumer traps. Markets evolved for facilitating fair exchange between producers/ sellers and consumers/buyers. But many consumers and producers take decisions to transact in the market without rational thinking and later blame the market for their wrong decisions, Such producers and consumers are not willing to take resposibilty for their own decisions. However, markets can become traps if for some reason, especially because of the folly of the Govt, / regulators, the market is not transparent, not adequately competitive and not supported by infrastructure for correct measurements, enforcable contracts, dispute resolution mechanisms etc. Generally, countries where the Govt.s are corrupt, such trap markets are set up with the conivance of the Govts./ govt. officials.

Answer 3

In theory it is not. A previous answerer correctly pointed out that the market is driven consumer demand. A product is successful if consumers choose to buy it and not if they do not embrace it.

Marketing however can be manipulative. Markets for commodities can be manipulated to the detriment of the consumer from a price standpoint. A mistake we see today is consolidation of distribution points for commodities and consumer goods. GM and Chrysler don't compete on values or cost. Across their various products lines they compete on appeal alone, not price.

Oil companies don't compete on price either. They have silly visibility campaigns and think we care that they say Shell keeps your engine cleaner that Mobil or vis-versa. Their cost structures are predetermined by a commodity market trading structure that is inherently manipulated for speculative purposes.

Back to theory gain, if markets are diverse and free from manipulation by speculators then consumers win. Presently, however, this is not the case.

Below are synopses of theories four of the major market economists of the past century, Keynes, Friedman, Smith and Stiglitz.

Answer 4

Being able to stimulate an economy which supports a larger number of people sounds pretty good. The problem is that today's luxury items quickly become tomorrows necessity. The kid who flips burgers wears shirts woven from a fabric he couldn't produce in a time effective manner. He gets to buy over the counter cold remedies, play sophisticated video games, be told what the weather is going to be several days in advance, etc., etc., etc.

All he has to do is be willing to give up ten hours a day, six days a week in order to perpetuate his existence. Anything he can't readily afford can be put on credit. That further locks him into staying on the treadmill of a job he's got. His staying on that treadmill makes cheap burgers available for the folks producing textiles for his shirt, diesel for the bus he rides, heating for is apartment, etc. In the end, we give up 50 to 70 hours a week for 45 or more years of our lives... all because we played ball in the marketplace.

That qualifies as a trap.