To: The Houston Courant
I think it is misleading to say they are causing the high costs. Prices are determined by supply and demand. The middle man has simply inserted himself to get a piece of that. If you pushed him out, supply would not increase. Demand would not fall. The only result would be that the middlemans cut would go to someone else.
To: Brilliant
If you pushed him out, supply would not increase. Demand would not fall. The only result would be that the middlemans cut would go to someone else.
Except that cut for the middlemen is a huge part of the price. They eat up any rebates the manufacturers offer, and are putting a 30% overall markup (per the article). So yea, cutting back on these practices (which are illegal in almost every other industry) should save the end consumer about 30%.
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