NDP problem
Posted by turdslinger on June 8th, 2010 at 9:57 pm
It’s this kind of stuff that scares people who know anything about economics away from the party: “No one believes that businesses will pass on their savings to consumers. If the government’s own business—the LCBO—isn’t going to pass on the savings, why should those in the private sector?” said [NDP leader] Horwath.
It’s not a matter of why should they as in why would they feel any moral compunction to do so, but a matter of that’s just how competition works. Unless you have mass price fixing, eventually someone says “Hey, it’s costing me a bit less to produce my crap, so I’m going to lower my costs a bit to beat out my competition,” and then the competition does the same thing and so on and so forth until prices come down.
