Consumers buy the cheapest good that will give them the value they expect

Have you ever heard someone insisting on having an accredited phone, car or washing liquid?  No?  Gary North explains,

“Let me tell you who else does not care about America in general: individual Americans. How do I know this? Because they do not “buy American.” They never have. When the federal government lets them buy whatever they want, they buy the cheapest good that will give them the value they expect. They do not care who makes it. They do not care if it is imported…All they care about is price and quality.” (emphasis added)

Consumers care about price and quality.  But only corporate buyers care about accreditation.  The reason they care is because their own accreditation requires them to deal only with other accredited suppliers.  This compulsion is written into the ISO standards.  Corporate buyers don’t carry this through to anything they buy with their own money.  It only matters for other people’s money because accreditation does not provide value or assure quality effectively.  In some cases, the inspection cartel has obtained legislation to strengthened this demand.

Accreditation assures that an inspector has been satisfied about record-keeping.  Nobody who isn’t an inspector cares about this.  Only the hoodwinked believe the cartel’s “quality” is true quality.

True quality is harder to describe or see.  Search Google Images for “quality” and all you will find are pictures of tick-boxes and accreditation marks.  None of them will make you want to buy.

This entry was posted in Bureaucracy, Cartel, Economics and tagged , , , , , . Bookmark the permalink.

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