Monday, January 11, 2010

Perry's Law of Economics

True and relevant for a statist world:

It's a basic law of economics (Perry's Law) that "market competition breeds competence" (and lower-priced, higher-quality products), and government restrictions on competition and market forces breed incompetence (and higher-priced, lower-quality products), so the more the competition, and the more cutthroat the competition is, the better the outcome for consumers. It's also the case that the "smell of profits" attracts competition, and Amazon, Google and Apple all have stock returns double the 30% market return over the last six months measured by the S&P500, so that redolent attractive odor of profits might be churning up some potentially significant competition right now.

See the rest here.

No comments:

Post a Comment