Chlorine is added to our drinking water supply to kill microbes. Chlorine can also kill humans, but is designed to be at a safe concentration by the time it discharges from our faucets. The safe standards that we use are not our own – we simply adopt those published by the World Health Organisation.
I am responsible for keeping my body in good health; therefore, I only drank coconut water. I tended to drink about six bottles each week. It used to cost $12 per half-gallon bottle before COVID when I started, but the price kept increasing with the increased demand. This week, the fellows on the side of the road were selling a half-gallon bottle of coconut water for $17.
FREE-MARKET ECONOMY.
I decided that this fellow had likely priced himself out of the market since the neighbouring coconut vendor a few metres away would likely take his customers. However, before I could explain to him the principles of a free-market economy, the vendor, sensing my gaze and correctly guessing my thoughts, explained that everyone on the road was now selling at the same higher price.
I purchased one bottle from him and one bottle from the neighbouring vendor to verify his claim. I then checked to see if the price of plastic bottles had increased, and I understand that they did increase during COVID to about $1.75 but the price per bottle has returned to about $1.05.
CORRECTING A DISTORTED MARKET.
A free-market economy depends on competition. If there is anti-competitive price-fixing by independent vendors, then this is illegal in Barbados since it violates Section 33 of the Fair Competition Act. However, it is unlikely that the authorities will intervene to correct this market distortion – because it may not look good politically to be going after coconut vendors.
Educated customers can allow the market to correct itself by reducing the demand, but in Barbados, that too is unlikely – based on past customer behaviour and what can only be explained as intentional damage to our educational system.
AS FOR ME AND MY HOUSE.
For clarity, do coconut vendors have a right to increase their cost of coconut water? Of course. They can increase it to $1,000 a bottle if they wish. But a fair competitive market will soon bring them to their senses. Do independent coconut vendors have a right to fix the price of coconut water in Barbados? No. That is illegal. However, the price fixing is not illegal if the vendors are affiliated.
As for me and my health, I have decided to: (i) reduce the coconut-water demand by reducing the number of bottles I purchase to two per week, (ii) drink filtered water that removes chlorine, and (iii) plant coconut trees so that I am not dependent on a distorted market. This train has been allowed to run-away for far too long – time to step off before the foreseen wreck.
The blogmaster invites you to join the discussion.