July 14th, 2014
…but capitalism doesn’t have to.
The poor popular reputation of free markets may be connected to the prevalence of deceptive advertising, especially for consumer goods and services.
Spend just an hour watching TV after midnight, and you’ll be bombarded with ads for penny auctions, infant life insurance, sports betting (you’ll win thousands), anti-impotence drugs (or is it penis-lengthening? They’re never clear.), etc.
As Michael Caldara said in the first link above, “we don’t hear calls to regulate infomercials, get-rich-quick seminars, and fad diets”, but – perhaps we should?
I’d prefer vigorous enforcement against common-law fraud, but (in my humble opinion; don’t sue me,) these ads intentionally mislead the ignorant and incompetent. That’s why they air when most successful people are asleep.
To many people this gives the impression that capitalism is little more than legalized theft and deceit. A crackdown on these obvious (to me, anyway) cases of fraudulent advertising might go a long way toward improving the reputation of both government and business. Markets only work to society’s benefit, not to enrich those with the least scruples, when the basic rules of honest dealing are enforced.
If that’s too hard, another path would be an organization of ethical businesses that observe a code of honesty (complete with a membership seal).