Cognitive Dissonance

"Democracy! Bah! When I hear that I reach for my feather boa!" - Allen Ginsberg

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On the First Amendment, the free market, and boycotts, part IV

 mrpooscratch replied to your post: On the First Amendment, the free market, and boycotts, part III

That’s where I have to part ways with you thought-wise, I am a purist in the sense that if you run a business, you have to right to succeed or fail based on the free market. Like, MySpace.

Which has been the target of boycotts

And I’m not arguing that businesses DON’T succeed or fail based on the free market, bro. Boycotts are an externality of the free market. An externality is simply “an effect of one economic agent’s actions on another, such that one agent’s decisions make another better or worse off by changing their utility or cost. Beneficial effects are positive externalities; harmful ones are negative externalities.”

A company dumps massive amounts of pollution in a river, a company dumps massive amounts of money into anti-gay hate groups. In both cases, consumers in that free market place economic pressure on those companies to cease. 

The free market does not protect business from the actions of unhappy consumers. Do you suggest the government ban boycotts? Well, besides being unconstitutional, that’s government interference in a free market supposedly driven by consumers and producers.

Cheers,
Meg 

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