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Some People Have Money To Spend

Black Friday is bargain day for millions of people. The ascent of online shopping has also generated the internet version called Cyber Monday. The marketing has been migrating, however, from promoting a single day or weekend to offering deals over the entire months of November and December.

People generally like to feel like they are getting more for their money because it is usually a limiting factor in their decisions. Life is made of trade-offs. Most people would like to be able to buy better things and to have more of the things they like and enjoy. That is a part of the human condition. There will always be unfulfilled needs and wants.

Limited resources are a key fact of economic life that gives rise to much of what happens in markets and to the progress of societies. Because they are limited, people must decide how to use what they have to make themselves better off.

The proverbial “better mousetrap” keeps people searching for new ways of doing things,for better materials, and for cheaper sources. Every business has a unique set of processes, locations, and personnel. Its advantages and disadvantages determine what things it produces and its relative profits. Because people always have wants and needs but limited resources, the tendency is for competitors to find ways to reduce prices, to increase quality and features, and to find new ways to solve problems in order to capture a larger share of the market. That is a good thing. The common man or women in western countries of today enjoys things that even kings and the wealthiest people of prior times couldn’t even dream of.

It is certainly true, though, that some families in free societies are better off than others. For many in the middle class, resources are more abundant, and there are still others who are able to spend freely with no concern. There is such a variety of goods and services because customers are so varied. Something is available to match nearly everybody’s preferences and trade-offs.

A mattress is a standard item needed for a comfortable, healthy life, but if you walk into a bedding store, you don’t see just a mattress. You will likely see dozens of different ones with a striking array of prices. Some are certainly more comfortable than others, and better mattresses tend to cost more. You can even, if you want, pay fifteen thousand dollars for a mattress. It is likely a pretty special experience fit for royalty, but there comes a point where the marginal increase in comfort is likely very small compared to the increase in price.

Buyers of those mattresses have very different priorities from most others, because their limitations are different. Some people feel that it is wrong to waste money on such luxuries, but as long it is was gotten through honest trade without coercion or fraud, it is not for anyone else to set their priorities. Their gain is not anyone else’s loss.

Facebook, Microsoft, and so many other corporations have made billionaires of the owners. Whether you like any or none of them, to the extent that they did it without corporate welfare or violating the rights of others, each of them served the needs of millions of people in some way. It is their money to spend, save, or invest as they see fit. Many of the innovations we take for granted started out as toys for the wealthy, but over time, competition made them available for the masses. Some people have lots of money to spend, and it is actually very good for the rest of us that they do.

Dan McLaughlin is the author of “Compassion and Truth-Why Good Intentions Don’t Equal Good Results.” Follow him at daniel-mclaughlin.com.

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