Adam Smith 101

     I got involved in an online discussion about how digital has taken over the photo marketplace. This was on an analog discussion board, so some people were looking for someone to “blame”. This particular guy was claiming that it was a plot by greedy salespeople and manufacturers to make more money. I think we can all see how silly that is, the salespeople and manufacturers are indeed making money, but only because consumers are demanding those goods. Many people fail to apply the same logic to other companies. The same rules apply whether we are talking about cameras, oil, food, etc. Companies are ALWAYS trying to make as much money as they can. Some times are better than others, but it is up to them to figure out how to make money with the current demands of consumers. The consumption is worth more than the price of the good, otherwise the transaction wouldn’t have taken place. It’s a win win situation, even when the price is high. The corperation gets revenue and the consumer gets something they value more than the money they paid. It’s one of the primary misunderstandings involving trade, trade is always mutially beneficial, otherwise it doesn’t happen. Trade is always good wheather it’s between two people, a corperation and a person, or between countries, it is always mutually beneficial. We should worry more about the trade that is not allowed to happen…


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