<p>I think in many ways you misunderstand concepts of the free market.</p>
<p>Competition - pure, unregulated competition - will produce better products with lower prices. What we have is regulated competition, and therefore restricted competition; specifically, "those regulation that protect the status quo" are barriers to entry that keep what could be viable competitors out.
Also, opportunity cost and alternatives are a huge part of economics. You say, </p>
<pre><code> * "Don't the same types of regulations exist for the automobile industry (land, energy, safety regulations, etc.)? And aren't we still able to purchase safe, affordable vehicles?"*
</code></pre>
<p>To answer the latter question, no, becuase your definition of affordable is that everyone can buy them, and there are definitely people who can't afford cars. That's what you want for birth control, for everyone to be able to afford it, right? (correct me if I'm wrong) That's nice, but how much better and more affordable would they be without regulation? YOu have to look at what's sacrificed for the status quo. We have the same types of regulation in the drug industry and, according to you, we are not still able to purchase affordable drugs. </p>
<p>About safe products and affordable products living in the same world, I believe it is possible...given a free marke. The problem is that the government is the one who decides what is "safe," and it had mandatory taxes to sit on if it fails. If the government does a bad job, it doesn't get replaced because it will still have control over what gets in. What would be better is competing businesses who do feedback on products, like Consumer Reports, and therefore have an incentive to be thorough and accurate because their continued surivial depends on the consumers. People can choose which companies they'll trust, or look at feedback from all of them and make informed decisions. </p>
<p>You want checks and balances in the free market? That's what it's all about (you put your right hand in, you put your right hand out...) The free market communicates mainly through prices - you don't have to know there's a farmer strike in Cali and supply is going down, you see that the price of milk is going up and you act accordingly. You go to a bad restaurant, you never go there again, they lose your business and everyone else's who goes there, and they go bankrupt. Or, you never went there in a first place b/c multiple people have founded businesses that inspects restaurants and publish thier findings. Why did they found those businesses in the first place? Partly becuase they know they could make a living off of it, or maybe b/c they want to serve humanity. </p>
<p>Go ahead and have at me one more time (or two, if I can't resist responding), but we are getting a little off track and I would like to get back to birth control. Maybe we can start a separate thread on this topic and argue econ so long that we'll actually start thinking economist jokes are funny.</p>