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So, you may be right about scalpers providing nothing to society. But you are absolutely wrong about middle men in general. At a super high level, they have to
by milesvp 5y ago
So, you may be right about scalpers providing nothing to society. But you are absolutely wrong about middle men in general. At a super high level, they have to provide value else they would be short circuited. Very often this value is in knowledge, both product knowledge, customer knowledge, and market fit. A good middle man can tell you that the thing you think you want won't fit your needs as well as some other product (bonus points if the product isn't something they personally sell). You will also find a high correlation between the health of an economy, and the number of middlemen present. It's actually something that has concerned me in the US for several years, that too many companies have been squeezing out the middle. I think it's exacerbated the current supply chain issues.
- pishpash 5y agoMiddlemen are good if they unbundled and directly charged for their services and did not act as arbitrageurs simultaneously. Middlemen who withhold information or resist competition are rent seeking, which is a strictly negative utility for society.