Tuesday, June 3, 2014

Anti-Market Bias in "The Diplomat": Coffee Edition

When I read this article in The Diplomat, I could not help but roll my eyes at the sheer idiocy and the utter lack of economic literacy that seemed ready to burst out of my screen.

Starbucks may "threaten" local Korean coffee shops but, rightly or wrongly, it does not change the fact that Starbucks is popular because consumers like it.

Coffee snobs or those who prefer mom-and-pop coffee huts may sneer at the philistines that go to Starbucks, but it is what it is.
Legislating away successful coffee shops because they "threaten" smaller coffee shops comes down to three basic things:

  1. It limits the consumers' ability to choose to buy what they want.
  2. It punishes successful businesses simply for being successful.
  3. It assumes that legislators somehow understand and know what millions of consumers want.

That economic illiterates can write about economic topics with such an unthinking attitude for a multitude of readers who are just as economically illiterate is frightening indeed!



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2 comments:

  1. Shinsegae is 50% in on Starbucks in Korea. Regulation is going nowhere with the Samsung big tent behind it all.

    brier

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    Replies
    1. I don't think it is accurate to say that regulation is going nowhere.

      Seeing how Big Business and Big Government has been in bed together from the beginning, it will most likely be a case of an enforcement of particular regulations that will affect everyone but those Big Businesses and their government lackeys.

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