Consumer Sovereignty: Competition is good for us

Want to find a product or service that is getting better at lower cost every day?  Look for a competitive industry.  Want to find products or services that get worse and more expensive every day - look for government enforced monopolies or oligopolies.  As Frederic Bastiat famously said:  "Treat all economic questions from the viewpoint of the consumer, for the interests of the consumer are the interests of the human race."

The economic lessons of "consumer sovereignty," "competition breeds competence" and "free trade benefits consumers" are illustrated in this AP story "For Car Buyers, It's Harder to End Up with a Lemon":

"In the past five years, global competition has forced automakers to improve the quality and reliability of their vehicles — everything from inexpensive mini-cars to decked-out luxury SUVs. The newfound emphasis on quality means fewer problems for owners. It also means more options for buyers, who can buy a car from Detroit or South Korea and know it will hold up like a vehicle from Japan.

With few exceptions, cars are so close on reliability that it's getting harder for companies to charge a premium. So automakers are trying to set themselves apart with sleek, cutting-edge exterior designs and more features such as luxurious interiors, multiple air bags, dashboard computers and touch-screen controls."

"It's a great time to be a consumer," says Jesse Toprak, vice president of industry trends for the TrueCar.com auto pricing website. "You can't really screw up too badly in terms of your vehicle choice." 

Thanks to Morgan Frank and Dale Weaver.