UPS vs. FedEx, Or Good Competition Vs. Bad Competition
Reason has a nice, short video summing up UPS’ efforts to lobby the government to use its regulatory powers to hamstring UPS’ biggest competitor FedEx.
What I think this highlights is the difference between good competition and bad competition.
Good competition is what happens when one business competes with another business by offering better prices on its products or services. Or better quality. Or better service.
Bad competition is what happens when one business compete with another business by burning that businesses’ store down. Or otherwise undermining that business’ ability to do business.
With good competition the general public wins because the competition inspires better prices, better quality and better service. With bad competition the public loses because real competition is suppressed, and the winners in the market aren’t determined by who has the best performance but rather who’s the best at sabotaging the competition.
Government exists in the markets to ensure that only good competition happens. Sadly, our government has grown so large and so intrusive that it’s often the vehicle for bad competition.
Such is the case with UPS vs. FedEx. UPS is trying to use the government for bad competition practices, and the greedy looters in the government are all too happy to play along. Under the auspices of doing it to protect us from ourselves, naturally.
