Blog Entry 8- Companies Compete, You Win!

Capitalism is defined as an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market (Merriam-Webster, 2010).

We live in a wonderful nation.  American citizens retain the right to pursue any aspect of life they choose.  Our capitalist society also allows for the privately owned businesses to take care of their own activities.  When companies have complete control over their private production and profits, competition is the next logical step.  Companies with the same interests can compete with one another for the patronage of consumers.  Prices are often the variable being decided on.

Health care has been a rising issue for some time now.  With medical costs on the rise, many people are wondering how they will afford medical care.  This is where competition plays its part.  When consumers pay for medicine themselves, saving insurance for the big things, and doctors deal directly with consumers, doctors begin to compete (Stossel, 2007).  This economic competition is what keeps the prices low.  Low prices create happy people.  So the next time you see that annoying advertisement on television, remember this:  that annoying advertisement is keeping prices down for YOU.  Competition gives consumers more choices. And choice gives them power (Stossel, 2007).

http://bennygunns.com/wp-content/uploads/2009/06/the-faces-of-capitalism1.jpg

Citations:


capitalism. 2010. In Merriam-Webster Online Dictionary.     
     Retrieved October 18, 2010 from http://www.merriam-     
     webster.com/dictionary/capitalism.


Stossel, J. (2007). Medical Competition Works for Patients. Real Clear Politics. Retrieved from http://www.realclearpolitics.com/articles/2007/10/medical_competition_works_for.html

Blog Entry 7- What is Competition?

Upon the completion of my blog to this point, I realized I have yet to explore what competition is exactly.  The Online Merriam-Webster Dictionary (2010) defines competition as “the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.”  The definition of competition is shared across all theaters of life.  When there is something that simply cannot be shared, there is competition.  However, while humans often compete for entertainment and social reasons, animals compete every day for an entirely different reason: survival.  A more primal definition by Webster (2010) defines competition as an “active demand by two or more organisms or kinds of organisms for some environmental resource in short supply.”  Whether it's two companies competing for lower prices or two monkeys fighting for a banana, competition is a part of all life as we know it.

[Image]http://lowposts.com/wp-content/uploads/2009/04/monkey.jpg

Citations:

competition. 2010. In Merriam-Webster Online Dictionary.     
     Retrieved October 11, 2010 from http://www.merriam-     
     webster.com/dictionary/competition.