yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Starbucks predatory practices, and 'the will of the people'


2m read
·Nov 8, 2024

Lawton, you made a video about the predatory business practices of Starbucks and asked how this will be dealt with in a free market or how we dealt with in the absence of government regulation.

Specifically, I think that in a free market, some businesses like Starbucks would continue to engage in tactics that would get slammed by some people as predatory and anti-competitive. I think it's important to remember that people currently can choose not to patronize Starbucks. They can choose to avoid it because they disapprove of Starbucks' business practices, and maybe many people do so already.

We don't know exactly how many people are making that kind of choice. The extent to which people feel strongly that businesses should not behave in certain ways will be the extent to which people take the trouble to inform themselves about which businesses are actually behaving that way and then avoid them.

So, in other words, people who feel strongly enough against Starbucks' business practices will have already stopped patronizing Starbucks. They may even be spreading the word about Starbucks' lowdown tactics. Meanwhile, Starbucks is able to perpetrate its so-called predatory practices only to the extent that people prefer to buy coffee at Starbucks than they do at rivals.

So, apparently, on aggregate, people value what Starbucks offers more than they care about and object to Starbucks' predatory business practices. If and when people on aggregate care more about stopping these predatory practices than they do about the value that they currently get from shopping at Starbucks, then Starbucks will not be able to continue in the same way.

Whether we personally disapprove of what Starbucks is doing or not, I think it's important to notice that leaving the market alone gives a situation that does a much better job accurately reflecting the will of the people than having a blanket ban on predatory practices does.

Since the goal of democracy is to have a government that reflects the will of the people, to the extent that we think the market is a good idea — and as an aside, my dog thinks so — to the extent that we do, regulation is redundant in this area because people are already revealing their values in a very direct way by either shopping at Starbucks or by boycotting Starbucks.

More Articles

View All
What Makes The Top 10% Of Founders Different? - Michael Seibel
One of the questions I get often during the batch of YC is what separates out a top 10% founder versus everyone else. When I started at YC, I didn’t really have enough context to know as a founder. My own company, of course, had my own friends, but that w…
Continuity and change in the postwar era | Period 8: 1945-1980 | AP US History | Khan Academy
The era from 1945 to 1980 was action-packed, to say the least. During this period, the United States experienced the baby boom, the civil rights movement, the tumultuous 1960s, and the quagmire of Vietnam. This era was also riddled with contradictions; a …
Weird Inventions That Changed Humanity
Imagine you’re hooking up with different partners; you grow fond of some more than others, but generally, you’re having a good time. That is until your lovers start to fall ill and die. For some reason, this disease doesn’t affect you; it just kills off y…
Social contract - schmotial contract
People who support the state often say that everyone who lives in the territory claimed by the state has implicitly agreed to abide by the state’s rules; that by not leaving the territory, they’ve entered into a voluntary agreement. This agreement is ofte…
Living Off the Land in Hawaii | Explorer
People in developed countries often take it for granted that they can eat whatever delicacy they want from anywhere in the world. But there are some who fear that this globalization of food is putting all of us at risk, and they are now going back to livi…
Neuromarketing: You're Being Manipulated
This video is sponsored by The Daily Upside, a free business and finance newsletter delivered every single weekday. Nowadays, it seems to be a common theme amongst almost everyone to go out and shop our way to happiness. You know, just to take care of our…