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%.
To: Svartalfiar
That doesnt change anything. Its not a competitive industry so the price does not reflect the cost. Think of it this way. Suppose you had a business and because you were a monopoly you could charge a very high price. Your brother in law needed a job so you hired him and pay him more than hes worth. That doesnt increase the price you charge. It just reduces your take home. If you fired him then you could save that money but the price you charge would not change. Why should it? Supply and demand have not changed.
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