The New Economics: Adam Smith and Customer Information

reply to facebook discussion on this:

Its an interesting one that I spend a lot of time thinking about. I believe it is sanctioned by the "invisible hand" argument. As you know in free market: seeking profits leads suppliers to give customers what they want, and customers freely choosing what they want should filter out the rubbish from the market place. Everyone doing what they want should work. But somehow you're right the customer is ignorant. Seeing only the packaged end product they have very limited knowledge. Seems Adam Smith was only looking at "final product." Likewise tobacco business was able to able to hide the impact of smoking for half a century. And the current internet buzz is vaccines - I certainly think the fact they are not tested is a crime already. But I have this argument all the time: we can't expect the customer to be an expert on everything they buy (tho internet is what is making the difference now.) You'd expert the manufacturer to be the expert. So agreed taxation and also liability for exploitative dishonest practices. "Would the customer not have bought the product if they knew" kind of legal question. Like the one in the press now about whether undercover cops having relationships with targets committed rape... if target knew they were investigating them would they have had sex -> if not then rape. Same with products: if the customer had known that the potato was manufactured in a chemical warzone would they have eaten it... wooa legal minefield.