Except now the pigs encouraged to provide more of whatever he’s selling in the future, ensuring you’ll always have access. More importantly though, everyone else sees the high return on investment and wants to get in on the action. The pig can try to stop them, but short of government interference (at which point he’s not a capitalist) he won’t succeed for long.
Eventually they’ll compete and offer quality and novel services for reasonable prices. They’ll still be making high return on investments, but if you’re paying it means that this thing is important, and a high roi ensure its continued production.
The alternative is you’re forced to pay through taxes, you only get one option, and there’s little to no incentive to provide a quality good or service at all.
Except now the pigs encouraged to provide more of whatever he’s selling in the future, ensuring you’ll always have access. More importantly though, everyone else sees the high return on investment and wants to get in on the action. The pig can try to stop them, but short of government interference (at which point he’s not a capitalist) he won’t succeed for long.
Eventually they’ll compete and offer quality and novel services for reasonable prices. They’ll still be making high return on investments, but if you’re paying it means that this thing is important, and a high roi ensure its continued production.
The alternative is you’re forced to pay through taxes, you only get one option, and there’s little to no incentive to provide a quality good or service at all.