1. Consumer Sovereignty and the Role of Government Intervention
- Author:
- Harold Furchtgott-Roth and Kirk R. Arner
- Publication Date:
- 06-2020
- Content Type:
- Working Paper
- Institution:
- Hudson Institute
- Abstract:
- American businesses and consumers have an unequal relationship. Consumers generally are and should be sovereign because a consumer—not a seller, nor a third party, nor even the government—usually decides what to purchase. Consumers must like a business to buy its product or service. If a business has poor service, sales will suffer. And if a business is tainted by scandal, customers will flee. As courtiers of purchasing power, businesses go on bended knee to pay homage to the consumer. Typically, a business need not like a consumer to sell products or services. In most lines of business, a seller must sell to anyone willing to pay. And although there are types of businesses where a seller can legally refuse a sale, most rational sellers seek as many customers as possible.
- Topic:
- Economics, Government, Sovereignty, and Regulation
- Political Geography:
- Global Focus