One of my favorite things about Christmas is watching the old movies. White Christmas, It's a Wonderful Life (one of my all time favorites), and Miracle on 34th Street (the original of course). Miracle on 34th Street has a few capitalism themes in it that I personally enjoy.
Free Market economists talk about the virtues of markets recognizing the preferences of consumers and that they must serve the desires of consumers or be driven out of competition by other entrepreneurs who will. Profits are the reward for offering products consumers want. More importantly, making profits does not mean taking advantage of customers or engaging in activities that many would consider beneficial to others.
This quote from the actor who played R. H. Macy demonstrates exactly this point when he state to his executives:
"Never in my entire career have I seen such a tremendous and immediate response to a merchandising policy. And I'm positive, Frank, if we expand our policy we'll expand our results as well. Therefore, from now on not only will our Santa Claus continue in this manner but I want every salesperson in this store to do precisely the same thing. If we haven't got exactly what the customer wants we'll send him where he can get it. No high pressuring and forcing a customer to take something he doesn't really want. We'll be known as the helpful store, the friendly store, the store with a heart, the store that places public service ahead of profits. And, consequently, we'll make more profits than ever before."
By offering customers great customer service and providing them with information on where to buy their goods an apparently "self-less" act Macy profits. Is this the type of service that individuals who fear business making profits and taking advantage of customers are concerned with? The writer's of Miracle on 34th Street seemed to understand that how markets work.
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