Does Capitalism have to mean raping the consumer?

Question

Isn't there a difference between econmically sound and taking advantage of your base?
Especially when some areas of our country don't have a competitive market.
This question can reflect many consumerable markets.

Answer 1

Hi Kelly. Well, the very essence of making a profit is charging more for something than what it cost to procure it. Be that a finished project, or a product.

What would "raping" be? How much of a profit? In example, furniture is usually marked up 100% from what the furniture store buys it for.

But gas is only marked up about 1% at the retail level, and only 4% over cost from the refineries.

Why don't people march in the streets about how the furniture companies are robbing them blind?

The answer, then, can't be simple. It depends on your definition of "raping" (or, gouging). I think economists would argue that the value of something depends on a lot of factors, but, at the end of the day, the value is what someone is willing to pay:-)

Btw: As a business man, I salivate for those no-competition places. Where are they, and what products do they need? I gotta get in on that!

Answer 2

How do figure that companies rape the consumer. The majority of costs on a company in the US are as a direct result of taxation or Government involvement(including the long running support of Unions that artificially drive up Labor Costs). Tell me how much of a profit you think a company should make on their service/product.

IBM 12%
Microsoft 9%
AT&T 8-11%

Not exactly piling it on top are they? Oh, and any part of the country that does not have a competitive market does not have demand. There is no such thing as having a corner on the market. If you do someone will come in and undercut you.

Answer 3

Strange question but OK, no, capitalism does not have to mean raping the consumer. I have no idea what "a difference between economically sound and taking advantage of your base.." means. Capitalism is providing goods and services at competitive prices while making a profit.

If areas don't have competitive markets, why don't they? Do you mean some remote, inaccessible place? Whomever chooses to service such areas should be lauded not criticized.

Answer 4

Capitalism isn't raping the consumer. I don't know if you've been to Walmart lately but they have the most choices, of the best products, at the lowest prices (relative to inflation) in the history of the US. Middle class Americans can buy more today for less than almost any other time in US history. And where in America do you not find healthy competition? The US has the most competitive marketplace in the world.

Answer 5

If enough money is being mad in an area competition will develop to win some of that profit. This is why capitalism is so good for expansion. Isolated areas, economic islands, are being changed by the internet. If you can deliver a package you can shop Ebay or overstock just like anybody else. This web based competition will help keep prices in check for isolated consumers who plan well.

Answer 6

Capitalism means just the opposite. The only time you'll see anyone "raping the consumer" is when they're the only supplier in the market. This doesn't last very long if the government stays out of it.

Answer 7

Well no it doesn't have to but thoughtout history, it just always seems to come to that end...

Our country was blessed with FDR's creation of what I like to call a psuedo-socialist-capitalist structure. The problem is that over the past 30 years, our government has been deregulating all aspects of FDR's New Deal that gave us that system.

So here we are... right back at square one which will historically end badly for the masses...

Answer 8

Capitalism doesn't exist. If it did, government couldn't.

The two are diabolically opposed.

Capitalism is where people are free and enlightened to the degree that they enjoy the fruits of labor and are fully informed by peers.

Where there is profit, leeches appear, and swarm initiative, thus overcoming all possibility of lasting progress.

This model is similar to courts and swat teams that silence those who attempt to blow the whistle on current community scams that are accepted as normal and healthy.

Capitalism is only found in Heaven. It's the natural harvest of unfettered minds, loving hearts and helping hands that do so not for fame or tax advantage...but because it's fun.

GOOGLE: Cloyd Bird; see also...Jedediah Bartman's Deathbed Confession

Answer 9

Capitalism is a wonderful thing. Look and the standard of living for the nations that adopted a capitalist economy early on. Where it breaks down - and governments fail us - is when there is a near-monopoly of essential resources and and collusion to remain uncompetitive. Think energy, and financial services.

Answer 10

Excellent question! I think capitalism is a good thing, but I think companies are going too far with CEOs making a gazillion dollars and then making 2 gazillion dollars in a buy out of his contract when he leaves after 10 months and gets 3 gazillion in a retirement fund! As a CEO, I think he should be paid well, but this is just wrong!