“Then why isn’t a BMW the same price as a Subaru?”
Questions like these make me wonder why the kabillion dollar educational industry doesn’t bother teaching basic economics. Then I realize they’d just screw that up, too, and turn us all into Keynesian or Marxist, or Keynesio-Marxists, and, heck, nevermind.
I took economics in college. But I've also been in the real world long enough to realize that what sounds good in theory is not always applied in fact. Markets aren't perfectly competitive. Economic elasticity is not as easy to compute as it is in the lab. Information does not flow equally to all parties in the market. And there are factors that impact demand more than just supply and cost. And corporations, surprisingly enough, don't value their customers and their workers more than their shareholders. So if given a choice between catering to one and screwing the other two, the corporations will choose that in a heartbeat. Virtually all the savings companies realize under Cain's plan will go to the company and its shareholders. As it should. That doesn't make it wrong, that's just the way it is.