In fact the free market is consumer centered and the great
free market thinkers in history have typically stood foursquare against the
entrenched business interests of their time. Remember, Adam Smith’s support for
the free market came out of the injustices of mercantilism and the protectionism and state
granted monopoly privileges that it gave rise to. Indeed, most opposition of
the free market comes not from anti-business sentiments but anti-consumer
sentiments. Trade barriers are erected to protect domestic businesses from the
fact that domestic consumers are choosing to make purchases from the
competitors of those domestic businesses (again see Adam Smith). Nearly all
restrictions on energy use are in response to the fact that consumer preferences dominate the market. For example, CAFE regulations are in direct
response to the fact that consumers desire larger, relatively low mileage cars.
The same is true with respect to restrictions on the kinds of appliances and
light bulbs we can buy. North Carolina’s own renewable energy portfolio standard (SB3) is based on the idea that consumers need to be forced to reduce their energy consumption and purchase energy generated from renewable sources. There is no question that consumers would never choose to pay the extra costs associated with energy generated from wind and solar voluntarily. The big utility monopolies don’t care what the energy source is so long as consumers are forced to buy the electricity that comes from it. Indeed these big monopolies tend to support these regulations, as was the case in North Carolina. The purpose in all these areas is to thwart consumer
preferences. In fact all of these regulations are pro-businesses in that they
limit consumer options and therefore limit competition. Businesses
traditionally have supported all of the regulatory agencies that regulate them.
The FCC, FTC, the now defunct CAB, all the laws that created public utility commissions at the state level were all supported by the industries that they were set up to regulate. Indeed the Chamber itself was a huge supporter of the early progressivist movement
to establish broad based business regulation. The fact is that a truly free market
is anti-business in that final outcomes are ultimately driven by what consumers
want, not what businesses want them to want. The Chamber is right to rank Ron Paul at the very bottom of their list of pro-business Congressmen. My hope is that one day all Congressmen would be vying for that position on the same basis that honor was awarded to Paul.