Main Points The Price of Everything is an unabridged dialogue between a seasoned professor of economics and a passionate college student that takes place as the student decides to stand against corporate greed. One of the overarching themes throughout the book is that even though a company may seek to maximize profits it is by no means malevolent or malicious. In the case of Big Box, it is easy to illustrate them as an evil corporation, capitalizing on the misfortune of others in the wake of a catastrophe. Yet Big Box was the only store in town that was able to provide the goods that people so desperately needed. This was a direct result of the increase in their prices. For the people in dire need of a flashlight spending an extra five dollars
…show more content…
An enormous storefront that provided everything you could ever need in one place; Big Box was able to operate at extremely low costs and offer consumers the absolute lowest prices. Clearly such a business seems like a savior for the poorer working class, but like actual superstores Big Box was met with much opposition when it tried expand to San Francisco. The referendum placed against Big Box kept them out of the city and is a perfect example of government interference for political reasons. While the book never goes into detail, it can be easily assumed the corporation was kept out because of how easily it would destroy the competition. Mom and Pop stores would never be able to survive when a major corporation could offer the same products at a fraction of the price. Invisible …show more content…
Much like in reality, prices control virtually every facet of life, however few people take any real notice of what this means. It’s quite easy to bicker and complain when the price of something is uncomfortably high and it’s even easier to find someone to blame. But how often do people think about where prices come from? Most would just assume corporations control the market and can charge any price they so please, particularly in the case of necessities, such as gasoline or energy. In reality, however, prices emerge dependent on the cost of producing the good and the value that the good holds. The most poetic part of this entire phenomenon is that prices are autonomous. For instance, imagine that the entire world is suddenly swept into an energy crisis, oil wells everywhere have dried up. As oil becomes more and more scarce its price abruptly begins to rise; of course the government can enforce a price ceiling guaranteeing shortages and encouraging black markets, but a free market offers better solutions. Without government involvement the increase in gas price will open a whole new market for alternative energy. Initially, consumers will reduce the amount of gasoline they use in an effort to curb the rising prices, but eventually technologies that were once considered too costly to develop will then become profitable. New technologies would then lower energy prices making our
An enormous storefront that provided everything you could ever need in one place; Big Box was able to operate at extremely low costs and offer consumers the absolute lowest prices. Clearly such a business seems like a savior for the poorer working class, but like actual superstores Big Box was met with much opposition when it tried expand to San Francisco. The referendum placed against Big Box kept them out of the city and is a perfect example of government interference for political reasons. While the book never goes into detail, it can be easily assumed the corporation was kept out because of how easily it would destroy the competition. Mom and Pop stores would never be able to survive when a major corporation could offer the same products at a fraction of the price. Invisible …show more content…
Much like in reality, prices control virtually every facet of life, however few people take any real notice of what this means. It’s quite easy to bicker and complain when the price of something is uncomfortably high and it’s even easier to find someone to blame. But how often do people think about where prices come from? Most would just assume corporations control the market and can charge any price they so please, particularly in the case of necessities, such as gasoline or energy. In reality, however, prices emerge dependent on the cost of producing the good and the value that the good holds. The most poetic part of this entire phenomenon is that prices are autonomous. For instance, imagine that the entire world is suddenly swept into an energy crisis, oil wells everywhere have dried up. As oil becomes more and more scarce its price abruptly begins to rise; of course the government can enforce a price ceiling guaranteeing shortages and encouraging black markets, but a free market offers better solutions. Without government involvement the increase in gas price will open a whole new market for alternative energy. Initially, consumers will reduce the amount of gasoline they use in an effort to curb the rising prices, but eventually technologies that were once considered too costly to develop will then become profitable. New technologies would then lower energy prices making our