Do you want more or less competition?

By Paul Hamby
Posted 10/22/25

One of the primary purposes of government has become to limit competition. That is not the proper role of government, but folks who want control have managed to turn government at all levels into a …

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Do you want more or less competition?

Posted

One of the primary purposes of government has become to limit competition. That is not the proper role of government, but folks who want control have managed to turn government at all levels into a tool to limit consumer options for the seller’s financial advantage.

New laws, regulations or zoning always sound like it’s to protect the consumer. But the primary purpose is to protect the seller.

For example, a new business may only be allowed in a commercial zoned area. Business licenses and permits are often required. Some areas in Missouri have a board that the new biz has to get approval from to open shop.

Thomas Sowell says “Competition does a much more effective job than government at protecting consumers.”

Sowell is correct. Sometimes competition is painful. When a new seller offers a better product or service, the existing sellers must step up their game or they will go out of business.

In the 1980s, Sears was the largest retailer in the world. Sears stores were well stocked. Sears had their own popular brand names like Craftsman tools, Kenmore appliances, David Bradley garden tractors and Farm Master farm equipment. Sears mailed out paper catalogs for many specialties plus their giant general catalog that was so thick that kids sat on it for a booster seat in the high chair.

How did Sears, the largest retailer in the world go from 3,500 stores in 1990 to 8 stores left in 2025?  Competition.

Walmart raised the bar offering lower prices and super stores for one stop shopping. Then along came the internet.  Amazon created a business model that changed mail order forever.  In one of the biggest ironies in business history, Sears, who became a giant retailer because of their mail order business, has been slayed by Amazon who is now the world’s largest mail order business.

What mistake did Sears make during the threat of new competitors?  Sears management forgot their purpose and dug their heels in to protect their established business model and management team. 

Sam Walton, Walmart’s founder, said, “If you don’t listen to your customers, someone else will.”

Walton was famous for driving his pickup to random stores wearing ordinary clothing. He would walk in like a customer and talk to customers to find out first hand what the consumer thought of that store and Walmart overall. Sam would also talk to the employees who had no idea he was the owner. After a few of those conversations, he would then see the store manager armed with the truth about how the store was doing in the eyes of the most important people: the customer and the employees.

Sam Walton’s take on customer service:  “There is only one boss— the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

Competition is good for consumers.

We should embrace and protect competition. It is the basis of our free market economy.

Prefiling of bills for the Missouri state legislature begins December 1.  2026. Goal: No new laws limiting competition.