Thus, Jonathan learned that, under a system of liberty, not everyone who will may become a monopolist.

Frédéric Bastiat
Economic Harmonies

Further to the mistake by the economists, the socialists and the communists concerning the intrinsic value of land, Frédéric Bastiat shows how competition helps in avoiding that landlords obtain undue payments for services they would not render. The reasoning is actually applicable to all types of competition and often misunderstood. Indeed, the beauty of competition is to “protect” the consumer – if the possibility of an alternative to the purchase of a service (or product) exists, it is then generally sufficient to avoid abuse from people with a position of power.

Today’s quote reflects this. A lot has been written and will be written in order to expose those who abuse their clients’ weaknesses but if producers are not protected by regulation and are subject to free competition, the only ones who will be able to serve their clients are the ones offering an optimal price for quality that clients are willing to pay. In the context of landed property, it is applicable to the landlord who would claim an undue rent but it is also applicable to any offer for services or products.

Other quotes from Landed Property:
Introduction – Part 1 – Part 2 – Part 3 – Part 4 – Part 5 – Conclusion

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