For as much as the US is associated with markets you would think that its citizens would have a pretty good feel for what they entail. But most Americans are removed from the mechanics of haggling in their daily lives as most of their consumer purchases are priced and on the shelves of the shops (virtual or in person) of their liking.
Americans actually don’t like to bargain that much. They simply don’t have that much experience. Even at markets that resemble the one pictured above, prices are honored. Every five years or so, in order to purchase a car, there maybe some uncomfortable bartering. Still many will doubt whether they got a good deal. And no one likes to feel they’ve been played the fool.
It’s a shame too, because it leaves a portion of the population disassociated from the moving impersonal parts of large groups of buyers and sellers weighing options and landing on agreeable arrangements. Traders know what it is. Auctioneers. But if anything a whole gaggle average people associate markets with the negative outcomes in some market transactions.
And since they dismiss markets as a mechanism, one that shuffles through a bunch of decisions made by their peers as they weigh options, they feel they best route is to pick arbitrary numbers and set floors. You can hear it in the rationalizing for rent control or minimum wage. We’ll fix the market!
They’re not fixing anything. They are interfering with a market. Which of course will resonate elsewhere in the system, resulting in the ever tiresome and now cliché– unintended consequence.