saxitoxin wrote:BigBallinStalin wrote:But the poor are involved in the decision-making process of the market, and even for the "market" of voting. Whenever someone voluntarily pays for something, that right there is a decision which influences the decisions of others.
Well, they're involved in the decision-making process inasmuch as a caged monkey is involved in the monkey food business. If the monkey doesn't eat Brand A monkey food, the zookeeper may switch to Brand B. But the monkey is never going to be asked to formulate a new type of monkey food from the ground up.
A poor person may buy an iPod or he may buy a Zuun, and his decision will influence which product succeeds and achieves greater market penetration, but a poor person isn't going to be involved in the invention of MP3 players. In the case of MP3 players, a natural demand didn't exist in the marketplace, the demand - like the product - was manufactured by forces upon which the poor have no influence.
It is true that some unknown amount of the poor most likely have a minimal influence on the total variety of luxury goods and their substitutes, but it really depends. For luxury perfume, you might be correct, but if they don't like $200 Brand A, then there's plenty others to choose from.
Your analogy is an inaccurate because there's plenty of luxury goods like perfume or even inferior goods and substitutes for Mr. "I'm A Poor Guy with 20 Kids" to choose from. It's impossible for a "zookeeper," or producer, to force the customers in place (in a cage) if the environment is competitive. For many goods, this holds true. You don't like Brand A? Then switch to something else or find a substitute. There's no cages involved.
Of course, your zookeeper analogy holds true if the zookeeper obtains a government-granted privilege (e.g. a monopoly).
RE: 2nd paragraph, it is difficult to determine the magnitude of influence which a poor person exerts upon the development of products. Sometimes, the developers design goods for certain target markets, which don't contain the poor, yet surprisingly that market is responsive to the good. Sometimes, the target market actually contains the poor, so (if they're smart) marketing research is conducted in order to discover consumer prefers, etc. That requires feedback from the poor, so in that case, there is obviously influence from the poor.
It just depends on the good...
IN other words: "In the case of MP3 players, a natural demand didn't exist in the marketplace, the demand - like the product - was manufactured by forces upon which the poor have no influence."
Demand is
discovered, not manufactured. In a free market*, if you want to produce something, you have to find out what the consumers prefer and can afford. In a sense, there is a "natural demand" floating out there, but that "natural demand" is a perceived profitable opportunity. The entrepreneur seeks to discover these opportunities, and the plans follow. To say that "the demand is manufactured" erroneously simplifies a very complex process.
*involuntary exchanges aren't markets, to be clear. E.g., an exception to the above would be government-provided goods through taxation or market-provided goods but by state-mandated privileges like monopolies.
Wow, long-winded, but whatevs.