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Capitalism does work



July 09, 2010 – Comments (5) | RELATED TICKERS: SIEGY , BSAC , DIA

I still don't understand how it was possible, but I just bought a perfectly ripe, super sweet, fresh Georgia watermelon for $1.50. It weighed at least ten pounds and was delicious. It beat fried chains at any fast food joint hands down.

Planting, growing, picking, loading to truck, shipping to vendor, unloading at vendor, displaying at vendor, delivery to consumer for $1.50.  Simply amazing.

5 Comments – Post Your Own

#1) On July 10, 2010 at 1:40 AM, 1315623493 wrote:

That just shouldn't be. The Federal Reserve should have made watermelons $10/lb by now with their hyperinflation policies!

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#2) On July 10, 2010 at 9:55 AM, brickcityman (< 20) wrote:

Interesting... But the assumption that 1.50 is enought to cover the costs of all parties involved in the transaction, much less permit a livable profit may be a bit of a stretch...  Just because you can buy something for a given price doesn't mean that you are buying it at an economically sustainable price.


Don't get me wrong, I'm a fan of capitalism... Its the best we have come up with so far...  But I think it requires guard rails.  After all, if 1.5 becomes the going price for watermelons you may soon find that in order to remain competitive the person selling you those watermelons will have to skimp some on quality or safety.


If anything I think the biggest (valid) critique of capitalism is that consumers don't often have the tools to weigh the value of goods they are purchasing and are forced to buy based on price alone.  There aren't many good solutions for this since you end up getting off onto topics such as information advantage and the impracticalities of expecting consumers to be experts on all the things they purchases.


Nevertheless... enjoy your watermelon... I hope the farmer who grew it will still be in business next year.

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#3) On July 10, 2010 at 10:09 AM, obsoleteaccount (< 20) wrote:

And the other things that went into that watermelon....

the people that made the tools that he used to harvest, the people who drilled the oil used to fuel the truck to transport it, all the things that were used for the watermelon that didnt even directly involve it...

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#4) On July 10, 2010 at 2:14 PM, Eudemonic (57.16) wrote:

Yes, I hope the farmer can stay in business at that price.

I returned to buy some more today at those prices and they were all sold out. The merchant said they went quickly. 

They do have watermelons from Mexico for $3.50 now. 

Brick: Good point about sustainability.  From what I saw, sustainability lasted about one day. 

Perhaps the watermelons were on their way to a different market to fetch a higher price  and the truck broke forcing the owner cut his losses on the load. Who knows?

Now the market is back at $3.50 which appears to be the going rate around here.



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#5) On July 13, 2010 at 3:02 AM, MGDG (32.88) wrote:

Just think, you could have bought all of his watermelons for $1.50 and turned around and sold them the next day for $3.00. You would have a 100% return and still been able to offer the lowest price watermelons in town by 50 cents. Ah, capitalism at it's best.

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