Tea With an Occupy Student

[XLFD]

A recent discussion with a young fellow I helped get through the local school system and is now away at college was a bit refreshing for us both.  He had admitted some empathy with the Occupy Wall Street (OWS) crowd at college and their stances.  I readily admitted some empathy with the Tea Party (TP) movement that gained ground back a couple of years ago.  A few of those political differences were discussed, and I think both of us found a bit of common ground in the other's outlooks.  Even though neither of us are strict adherents of either group, I pondered these grounds and constructed a Venn diagram to represent the relationship:

 

And considered the views of the intersection of the group as potentially stronger than the two groups, at least in my opinion.  After all, if government had no deals and privileges to dole out to the well connected, then couldn't a free and fair market occur for the benefit of all?  Except the 1% that depends on leeching off unfair laws and practices in the government and business world.

 

But in the midst of our discussion, my friend had made some derogatory comments about capitalism and so-called free markets in general, but to refute such generalizations I pointed out the benefits he had derived from that system back in September, when he related to me an anecdote. 

 

His required textbooks for classes would set him back at the campus' approved Student Book Store.  Looking to save money he had been able to buy some used texts from former students and alternate small businesses that offered significant discounts from the student bookstore.  Some he got free or near free from the internet for use on his Kindle.  He had the same fervor in his voice about how much he saved, as those people who cut out coupons for a living and cut their $1000 grocery bill down to $7.35 that you'll see on that Extreme Couponing show.

 

 

I reminded him how this illustrates that the public university he attended, in cahoots with the student book store, had artificially created the environment for being able to charge outrageous fees for books that the citizens of that university (students) either had to pay, or risk failure in their classes.  This explained why the two books he had to buy at the book store cost more than twice the amount he had to pay elsewhere for his six other books. 

 

The free market forces consisting of stores that rent out text books for a price cheaper than buying even a used copy, stores that buy and then sell used texts, internet services that connect those wanting to ditch a text with those with a need for them, students willing to barter texts, etc.  If the campus' politics allowed less of a monopoly for the campus' bookstore by giving them nonpreferential treatment, then the market forces would provide a more reasonable price for every student. 

 

Critics of the free market are quick to malign the dreaded profit motive but it works beautifully here.  The intention of organizers of alternatives to the campus bookstore is irrelevant. The market forces and competition among all the stores benefits the students.

 

As a result the campus bookstore finds that it can only charge so much before students will go elsewhere. In other words, there is a ceiling placed on their prices by competition with the other bookstores. 

 

Imagine how much books would cost in the absence of any competitor to the campus bookstore. There would be virtually no limit to how much they could charge. And people think text books are expensive now!

 

I finished our topic by then relating that most unfair playing fields are created as a result of cooperations between government agencies and big businesses that help increase the size and power of the other at the expense of the people.  Whether I converted him to the middle of that Venn diagram, I can't say, but the subject was changed in short order.

[Willy]

Free market capitalism is what made the U.S. the Worlds powerhouse. There is always going to be some corruption when business, finance and Government rub elbows. The problem with the Wall st. gang is they want  to convert our current system to a European style of socialism. Those that support this notion lack the maturity, knowledge and experience  to understand what they are proposing. Just like the spoiled child who complains their ice cream isn't sweet enough.

[XLFD]

And of course for the other side, most people in the government have an interest in being able to exert more power and influence into what they put everyone's money into, and pad their own (along with family and friends') pockets if they so desire.  Euro-socialism is going to be non-sustainable, as history shows, and we are seeing some of that failure taking place now in certain parts of Europe.

[Marty Redman]

This is a great lesson in economics, XLFD.  I want to share my own Venn diagram which I have determined that the Ludington Torch lies somewhere outside the circles.

[XLFD]

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