It’s 6:00 AM and I just awoke dreaming of yesterdays post on job pricing for your lawn care business and how it relates to a test question I had, many years ago, in high school economics.

I remember the question clearly because I was gunning for a perfect grade and I got the question wrong.  The jist of the question was along the lines of:

“In a capitalistic economy, such as the United States, a business owner can charge whatever price he wants to charge for his goods or services.”

I answered that question “True” since I believed, and still do, that the question was more concerned with political freedom of business owners and not a question on sound economic judgement.  My teacher marked my answer wrong.

Yesterday’s blog posting stated that a business owner must not charge less than jobs cost if he wants to remain profitable and avoid financial hardship.  This is my opinion from a sound economic viability standpoint.

However, harking back to high school economics, I will amend my statement to say that in a polically capitalistic economy lacking price controls a business owner is free to charge whatever he pleases even if it means the eventual failure of his business.

As July 4 approaches, we should be aware of how lucky we are to live under an economic system where we are allowed to thrive in our businesses, or fail with them, without undue political control.

Though I still disagree with my economics teacher’s assessment of my answer, I must give her credit for devising a question that begs examination many years later.

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