The law of supply and demand applies in all countries around the world. There is no debate about whether it is just or unjust, just as there is no debate about the fairness of the law of gravity. People regard it as self-evident and fundamentally simple: The more the price of a product increases, the less demand there is for it, and vice versa.
The law of supply and demand applies in all countries around the world. There is no debate about whether it is just or unjust, just as there is no debate about the fairness of the law of gravity. People regard it as self-evident and fundamentally simple: The more the price of a product increases, the less demand there is for it, and vice versa. This law is also useful, allowing national economies to readjust themselves according to changing circumstances.
But in Greece this law has been seemingly outlawed. It is not implemented, or we seek to ensure that it is not implemented.
Just as the inquisitors of the Middle Ages condemned the telescope as the “instrument of the devil” and wouldn’t used it out of fear of shattering the geocentric theory, Greeks regard the market as equally diabolical.
According to popular beliefs, the market is a mechanism used by the few, who we hardly ever see, to steal from the many.
The best indication that the law of supply and demand is not automatically applied in Greece can be seen in the example of “market crooks,” as television reporters never tire of reminding us – in their pompous fashion – morning, noon and night.
According to commonly accepted mythology, these crooks exploit various situations in order to make a profit. And so, as is always the case during the holiday season, TV reporters have started bandying around the word “crooks” in view of increased turkey prices.
First of all, it is worth pointing out that a certain element of cunningness is necessary to survive in any market. One must be able to sniff out what products are in demand, to what extent they are being supplied and invest where one believes there is the greater margin for profit. One cannot aim to keep profits low simply to placate TV populism or one will not last very long on the market.
Secondly, one must note that these “crooks” have not raised the price of other types of poultry. They did not do this because they did not want to end up throwing out large quantities of unsold chickens.
Thirdly, however cunning traders may seem, it takes two to tango. Consumers are not obliged to buy X or Y product. They are free to consider the available products and make their choices. If demand is not high then the boosted prices of these “crooked” traders will not attract business.
There is a widespread popular notion, reflected on television, that the market is essentially a “bad” thing – hence all this talk of crooks and profiteering. Perhaps this is why there is no real business culture in this country.
What child dreams of becoming a businessman? All of them want to become civil servants, don’t they?
KATHIMERINI English Edition, 21/12/2006