Monday, September 5, 2011
Example of Our Economic System
An article in the Fort Worth Star Telegram had an example of our economic system in action. Our mixed economic system borrows many ideas from the market economic system. The difference between systems being that monopolies are illegal and that the government can intervene if deemed necessary in a mixed system. In Fort Worth a hotdog vendor was accused of having a virtual monopoly; owning the rights to 5 locations. She mainly used only 2 locations; the others were only profitable during certain circumstances such as events. The local government intervened and forced the auction of 3 locations. However the vendor was already on the decline. This auction was the final blow in the vendors business and she was forced to close. The mixed side of our economic system crippled her business and its market roots offered no assistance in her closing. Though rather depressing this is still a good example of our economic system.