We are living in the world where everyone is fighting for survival and for other people it doesn’t matter anymore whether they make money out of other people’s blood or sweat. The most culprits in this issue are not ordinary individual but are the most legitimate registered businesses that seem so greedy for more power and wealth.
To those who benefited from price fixing they might blame me for writing this article but for those innocent people out there they might support me should they find out how cruel the world is to them, there are a lot of things and foul play that happen behind the back of individual consumers, “Price Fixing” is one of this cruelty.
WHAT IS PRICE FIXING?
For those who are not familiar with the term (Price Fixing) – it is the term used to identify two or more individual, companies or other market participants who offer the same product who engage themselves into an agreement to buy or sell the product at a certain fixed price so that they are able to control the supply and demand of those particular product or service they offer for sale.
THE REASON FOR PRICE FIXING
Individual and companies who offer the same product agree to push the price up or low but in most cases the price is set as high as possible for them to maintain or achieve their greedy goals. In this instance everyone who uses those product or service will be forced to buy them very expensive without even knowing and understanding what is the reason of the price going so abnormal, however since they have no choice they are forced to buy the product or a service.
WHO SUFFERS DURING PRICE FIXING?
Most people who will suffer in this price fixing issue are final consumers or end users. I have seen an issue of about 4 huge different South African banks which I will not mentioned here to protect their identity and maintain safety for everyone. These Banks conspired and came into agreement for buying and selling (currencies) at the fixed price; this affected a lot of people and other Forex traders, meaning these huge Banks traded against individual traders.
There are those innocent people who have worked so hard to get money to trade, some requested loans while others were using their life savings to trade, these people were found as the most victims of this price fixing issues however no one stood on their site of story, the government protected this banks without recognizing the main victims. This Banks were fined about 10 % by the government, OK it is fair enough for them to be fined! What about the innocent people who lost trillions of their investments?
Necessity products or services are the most products that force people to buy them even if the price is higher or abnormal; meaning with this system the poor become poorer and the rich becomes richer. People are forced to live an expensive life just to maintain the standard of living, it is better for those who can afford and where does these leaves those who do not afford?
IS PRICE FIXING LEGAL?
Not at all – you can see by yourself that this is inhumane and it is most oppressing the poor while the most fat cats continue to eat with a diamond spoon. Price fixing is illegal in most countries and it is considered cheating, there is lot of cheating that is going behind consumers back and it has left many people so helpless without even knowing where to go and report cases like this.
PRICE FIXING SCENARIO
Assume this: These shops are the only shops in Soshanguve , Pretoria selling school shoes.
- SHOP A sells a pair of school shoes at the price of R 1000
- SHOP B sells a pair of school shoes at the price of R 1100
- SHOP C sells a pair school shoes at the price of R 1300
- This shops propose a meeting to discuss their business, they final come out with a final price to charge their customers a price of R2000 for a pair of school shoes. This shops start to sell their school shoes at this price, since customers have no choice, they have nowhere to buy school shoes, so they are forced to buy this shoes or else their children will be forced not to go to school.Customers will continue buying because they don’t know anything about the market prices and those who don’t have enough money they are pushed to go to banks to ask for loans in order to purchase these shoes to make sure that their children remain at school.