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Source link: http://archive.mises.org/10465/marketers-beware/

Marketers Beware

August 14, 2009 by

Marketers love to entice potential consumers to try their product by adding an endless string of qualifiers. We have all heard commercials wherein the widget is claimed to be the “number one all metal, blue colored, American made, union produced, hand crafted, widget sold in the greater Anytown, USA area!”

It looks like this marketing strategy is going to be used against them. If you define the market narrowly enough, you are bound to find a “monopoly.” That is just what the Obama Justice Department is planning to do to the genetically modified seed market.

The Wall Street Journal reports that investigators will be examining the genetically modified seed market to determine if a monopoly exists.

Monsanto’s name was not mentioned but these comments were made in Monsanto’s home town at a, farmer advocacy group known as the Organization for Competitive Markets, convention. And since the OCM is funded and supported by Monsanto’s biggest competitor in the genetically engineered seed market, DuPont, it is clear whom the administration intends to target.

The OCM has been whining about Monsanto raising their prices for their seed products to compensate for their lost revenue now that Roundup is off patent (Tucker and Kinsella surely have something to say about this). Also among their concerns, as a condition of purchase, farmers must agree not to replant harvested seeds the next year. Bear in mind that these farmers are freely entering into a voluntary contract which, if they did not feel was worth the price, they could instead opt to purchase DuPont’s genetically engineered seeds. The fact that these farmers are still agreeing to these terms indicates that the costs imposed by Monsanto are less than the benefit derived from their superior product.

Unfortunately, if Jim Cramer’s Mad Money is any indicator of public perception, the Government will have considerable popular support. The Trotskyist, who masquerades on TV as the communist’s parody of a greedy capitalist, took the predictable position of the proletariat vs. the evil corporation. How dare they expect to be able to charge a premium for their superior product? How dare they allow these poor, taxpayer subsidized, farmers to willingly purchase their product and increase their crop yields? We cannot allow this to stand in the USSA!

See for yourself… have a laugh.

{ 9 comments }

Hal August 14, 2009 at 10:19 am

Good grief.

Giant Joe August 14, 2009 at 1:01 pm

This wouldn’t be a problem in the first place if it weren’t for IP laws…

So the government creates a problem, and instead of removing the thing that creates the problem, they create another problem so solve the first problem. Brilliant!

EIS August 14, 2009 at 1:24 pm

Producing a superior product which is highly desired equals coercion!!! Thank god for Obama and his anti-corporate policies (GE,GOLDMAN,GM); he’ll save us from this kind of abusive coercion.

roo August 14, 2009 at 3:04 pm

monsanto is one of the best (worst?) examples of a corporate interest influencing regulation to benefit itself. i’m not going to shed any tears if they get slapped with antitrust.

Free August 14, 2009 at 8:42 pm

Patents only last for 17-20 years, like in Roundup’s case. If the new patented stuff isn’t worth the price, just wait until it’s generic. The inventor is worthy of receiving compensation for an invention that will be free from 21 years to infinity.

Matt R. August 14, 2009 at 9:22 pm

I have no love lost for Monsanto.

filc August 14, 2009 at 9:23 pm

I hate to say this but I’d rather just see Monsanto fail. They are one of the biggest, blatent, screaming examples of what crony capitalism produces and one of the largest REAL polluters of private property on the face of the planet as far as I am concerned. They are what defines corporate fascism.

There is not one free market principle alive in that evil corporation. It only seems fitting for their own medicine, the gov, to backfire on them. Perhaps in the process business’s will learn to stop doing back door deals with gov officials.

Abhilash Nambiar August 15, 2009 at 12:13 pm

I agree with everybody here who hates Monsanto. If they are a victim of government regulation today, they where a beneficiary to the same before the Obama administration. The way these people file patents on genes, if your non GM crop accidentally cross-pollinates with the GM crop that your neighbor bought, they can sue and in fact they do. And patents in themselves are one of the greatest threats to free markets that there is. Stephen Kinsella knows why. This company has been a strangle hold on free enterprise for a very long time. Not only in the US, but in other parts of the world as well. I will be glad to see them go, although I would have preferred they where run out of business.

Vanmind August 17, 2009 at 11:52 am

Voluntary contract? Tell that to Alberta farmers.

“Oh, your farm is downwind from one of our areas of research? Tough t*tties, The Monsanto is now going to litigate you into bankruptcy for your thievery-by-breeze.”

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