Some Thoughts on Wolf

Wow. Wolf really hates people who really hate corporations. While he does make some valid arguments in response to the "paranoid fantasies" of those opposed to global corporations, his fierce tone detracts from his authority.

It seems like Wolf goes too far in dismissing the power of brands. Of course we buy products that are good. Of course, a company's brand name won't mean much if it is consistently puts out crappy products. But, a company's brand name can buy it some leeway in selling goods that might not be as good as its competition. People are often willing to sacrifice some quality in exchange for brand name goods. Wolf would argue, and rightfully so, that people derive value from the fact that their shirt is Polo and that makes it worth the premium price. That statement however, shows that brands do have a sort of controlling power even though it is a market outcome. Brands also benefit the companies that control them in that it raises the cost of entry into a given market. Companies that seek to enter a given market must have a large amount of capital to invest in advertising, otherwise their company will have no hope of establishing itself. In a way, a Brand causes asymmetrical information. The consumer knows about the brand name good, but may not know about its other options since smaller companies can find themselves 'stuck' under the weight of the brand name.

I don't think that there is anything wrong with branding your product, and you are foolish not to do so. In fact, the opponents of brand names have even provided companies with opportunities to use anti-advertising advertising campaigns, like No-Ad sunscreen. In the end, my beliefs fall on Wolf's side though not to the same extreme as his. I recognize that brands may cause some companies issues in establishing their product, but companies earn that brand recognition and successful companies work even harder to maintain that image. Instead of complaining about the power of brands, people should just be conscious when they make their decisions regarding what to buy. Rather than worrying if someone is reading the label on your shirt collar, buy the best shirt for you. It seems pretty ridiculous to fault corporations for establishing brand names.

We all benefit from established brands since they are a promise of quality - something that we can rely on. A US government official complained to Colombia about the drug problem in the, arguing that Colombia has an issue with drug production. Colombia made the smart response- are you sure you don't have a demand problem? (Can't remember where I heard that, some teacher, some time). The influence that brands can have is not the producer's problem, it is the consumer's problem. Shouldn't we just expect that people are reasonable enough not to care if someone looks down on them for wearing off-label socks? Let's hope so...