Wednesday, November 3, 2010

On the Potash Bid

Fascinating stuff.

Fascinating because the issue is exposing one of those dirty little secrets of the market economy... actually it's not little, the implications are massive... and it's not a secret, everyone knows it, but the great thinkers in the liberal camp just ignore it. Free markets create monopolies.

One of the main concerns that the Calgary business community has is the near monopoly this hands BHP over potash production. Irony of ironies, unless the government intervenes and stops the deal, the free market will destroy itself. Potash prices will no longer be set by the market, they will be set by BHP. The simple fact is that laissez-faire and the market economy just don't get along that well.

EDIT: In other free market news, the feds reject a mine proposal on environmental grounds. When will government learn to just trust the free market with the environment!!!???

2 comments:

  1. What "free market" are we talking about here, exactly?

    ReplyDelete
  2. If you have a point make it, don't try to be clever.

    ReplyDelete