Posted on 01/16/2008 8:52:01 AM PST by Lorianne
If big business thinks changes proposed by Labor to prevent price fixing are draconian, they should cast their eyes to some countries in Europe.
The Economist has taken a look this week at countries in Europe that have bent over backwards to accommodate small business with their trading laws. For example at around Christmas time, a number of European countries have a pre-sales black out on advertising discounts.
In France for example, sales by law can only begin after 9 January. In Belgium not only are sales banned before 3 January, but under “pre-sales” rules, for six weeks beforehand retailers cannot announce price reductions.
During the twice yearly pre-sales blackouts, a hundred inspectors from the Belgium Ministry of Economic Affairs scour the streets looking for window stickers, advertisements or price tags that even hint at discounts.
Inspectors apparently receive many tip-offs from rival shopkeepers denouncing each other. Courts are busy with lawyers arguing about what an extremely reduced profit margin means, as this is banned along with any selling below cost.
According to The Economist, the pre-sales black outs was dreamt up in the 1980s – not by leftie socialists but by centro-right politicians fearful that small business could not compete if big chains were allowed to go after bargain hunters in a free-for-all.
But even though the Belgians, like much of Europe, are attached to their town centres filled with small shops, there are moves afoot to change the trade restrictions. Get ready for more big business versus small business battles in Europe this year.
Strangely enough, these are the same places that another article listed yesterday as having the most freedom.
The only thing this report proves is that Europe, whether the so called right or the out and out Socialist Left, hasn’t got a clue how a free market operates. In Europe they all wanrt protectionism.
Oh, good Lord. People too inept to run a buisiness of their own (else why would they work for the government) deciding how best others may run theirs. That’s sure to work.
Compare this to what's happening with Starbucks here in the USA: they're forcing the competition to get better by natural market forces. Why do you think smaller chains and locally-owned coffeehouses are doing all kinds of upgrades to keep their customers from heading off to Starbucks?
I know I’m being dense here, but what is the reasoning behind disallowing a lowering of prices (i.e. sales) at certain times of the year? Talk about sticking it to the consumer.
It’s disallowing them for large businesses so that small businesses can compete and make more profit
FINALLY!
Something we can all agree on!
<Grin!>
look at what happens in the US.
The credit crunch brought democrates and republicans together in one thing :
There’s got to be an economy programm - run by the government.
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