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→Consider these three basic principles of economics:
There is also a more permanent imbalance in information between the buyer and seller of a good. The seller always knows more about his good than the buyer does. The seller does not want to disclose the disadvantages, weaknesses, defects, and outright dangers of his good. The buyer has to beware in paying money to the seller for a good: caveat emptor (Latin for “let the buyer beware”).
There is also a more permanent imbalance in information between the buyer and seller of a good. The seller always knows more about his good than the buyer does. The seller does not want to disclose the disadvantages, weaknesses, defects, and outright dangers of his good. The buyer has to beware in paying money to the seller for a good: caveat emptor (Latin for “let the buyer beware”).
Tobacco companies did not want to disclose that cigarettes cause cancer. Abortion providers do not want to disclose that abortions cause cancer. Used car dealers do not want to disclose that a car is a lemon (i.e., constantly needs fixing). Food manufacturers do not want to disclose all the fat and artificial ingredients in their products.
Tobacco companies did not want to disclose that cigarettes cause cancer. [[Abortion]] providers do not want to disclose that [[abortion]]s cause breast cancer. Used car dealers do not want to disclose that a car is a lemon (i.e., constantly needs fixing). Food manufacturers do not want to disclose all the fat and artificial ingredients in their products.
Governmental regulations require some of these disclosures. This may be the best and only effective type of governmental regulation. Food packaging now must state what the ingredients are and how much fat is contained. The buyer doesn’t have to guess about this information. The buyer must still beware, but can do so with more information than before.
Governmental regulations require some of these disclosures. This may be the best and only effective type of governmental regulation. Food packaging now must state what the ingredients are and how much fat is contained. The buyer doesn’t have to guess about this information. The buyer must still beware, but can do so with more information than before.