McMillan Chapter 1

Chapter 1 of Reinventing The Bazaar by John McMillan

The Only Natural Economy - A Market!

A market is defined  as "a meeting together of people for the purpose of trade by private purchase and sale" and "a public place where a market is held." There is much more to that. According to McMillan, there are two crucial defining features of a market.

1. Decision-making autonomy

On page 6, McMillian says "If people lack autonomy, then their dealings are not, by definition, market dealings."

The people need to be free to make their own decision. The people need to be free to decide where they shop, what they buy, what they are willing to pay for a product. If the decision come from a higher authority, then it is not a market transaction.

2. The market is decentralized 

On page 7, McMillan sates " No one is in charge of a market - or, rather, everyone is in charge. This decentralization brings dynamism. Markets empower people."

The market is not geared towards one group of people, it is designed to attract anyone and everyone. Collectively, the people run the market because it is their goods being sold and their appetites being satisfied when they purpose others items.


On page 13

McMillan says, "Markets provoke clashing opinions. Some people revile them as the source of exploitation and poverty. Others extol them as the font of liberty and prosperity."

I have observed these opinions, mostly in the news when a large business is in desperate need of a government bailout. This process of bailing out companies would cause some distrust in the market. Some businesses fail and some flourish. If the business is failing, it needs to just crash, no one should help because it disrupts the natural process of the market. If the government is going to offer bailouts, then every business needs to be given a bailout, not just big businesses with greedy CEO's that receive bonuses that could save the company.

I am not for either side because the market is meant to be competitive. I believe that people should be rewarded financially for being innovative and developing a product people can use. No matter what, someone will always be exploited. As long as I have the option to enjoy farmer's markets, such as the Eastern market in Downtown Detroit, and refuse to go to Meijer, it does not matter.

On page 13

McMillan says, "An absolutely free market is like folk football, a free-for-all brawl. A real market is like American football, and ordered brawl."

The market rules that are important for modern markets include:

1. The market should be accessible. There should be an online option for those who do not have the time or the physical capability to go to a store.
2. The market should maintain competition. Big business should not be allowed to overrun small businesses. Big businesses can afford to have lower prices than smaller businesses, so minimum prices should be set. There should not be government bailouts, if a business is going to fail, then it should fail.