26/04/2005 5:29:28 pm
Free Competition - Now! I just went to the Pharmacy (the pollen season is back). In Sweden, the Pharmacy is a state monopoly; I believe it was in the sifties or so that the private pharmacies were nationalized. Anyway, it struck me as I waited how many things they actually sell that have nothing to do with prescribed medication. Sun protection, toothbrushes, chewing gums, schampoo, condoms, etc. There is no reason whatsoever for the state monopoly to sell that. Private shops try to. And now, the monopoly competes with them - in markets with no connections with medication. This is what happens: A state monopoly is introduced and is supposed to do one thing only. But it is very tempting to use that power to compete in other fields. And they can always tell their owner, the state, that it is a better way to increase the profits. And you get unfair competition with higher prices for the consumer in the end. And a distrotred economy. What is the conclusion? Don′t introduce public monopolies! And if someone once did, take them away ASAP. It is about time for free competition in that field as well.