Arneson is saying is that if you keep the prices of products at an average, you don’t risk having a stampede. In a market economy this tends to be true, because if you either have too much of a product it looses its value and if you have too low of a price tag on your products that makes the consumer believe the product is cheaply made. This is one of the difficulties a business has to conquer when making trading deals.
But there are both pros and cons to a market economy. One of the pros is that a market economy’s competition raises innovation. It does this because with the flow of trade, goods and services along with great new ideas are circulated.
Since businesses have to compete with their overseas competitors, American companies make sure to take note of all their successes and failures that take place in the global marketplace. This then benefits the consumers because the competing companies are either trying to keep up with the leader of the race or make a better/newer product. In turn, this creates a need for