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October 1, 2009

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A Good Idea

Many people have been watching the decline of journalism with alarm. Whether you agree with the perspective of many journalists or not, it is investigative and detailed journalism that has made it possible for us to know who we are electing and hold leaders accountable.

Seth Godin posited a very good question on his blog the other day: what if Craigslist cost $1?

Some things are better when they’re not free.

If Craigslist charged a dollar for every listing, what would happen?

Well, the number of bogus listings and repetitive listings would plummet, making the site far easier to use.

The number of scam artists using the site would go down, because it’s more difficult to be anonymous when money changes hands.

The revenue of the site would soar, which means that the people running the site could get (far) richer, or fund digital journalism or change the economy of an emerging nation.

The people running Craigslist are sort of utopian collectivists (I mean that in the nicest sense of the word) who don’t actually want to get rich, and that’s fine — they should have the freedom to choose that approach, just as others should have the freedom to work hard, create economic growth and jobs, and enjoy the fruits of their labors.

But this is a really good idea from Seth Godin. It would improve Craigslist quite a bit, and could save investigative journalism.

On the other hand, we could skip the journalism and perhaps make a difference in the lives of 143 million children around the globe who have lost at least one of their parents. That would get my vote.

Michael Moore is wrong. Capitalism isn’t evil. It can do great things if people tell the truth and play by the rules.

What problem would you want to solve if Craigslist cost $1?

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  • http://www.chrometa.com/ Brett Owens

    Great post Aaron! I completely agree – there's nothing wrong with charging a fair price. Free probably distorts the marketplace more than anything.

    But – to the winner goes the spoils – they've definitely earned the right to run Craigslist the way they want. Can't argue with their success.

    Also I agree – entrepreneurship is the best way to fight poverty. The old teach a man to fish axiom. Create more value – make the pie bigger – helps everyone.

  • http://www.aaronklein.com aaronklein

    Exactly. Very well put.

    Amazing stuff you are doing with Chrometa! Excited every time I hear of your success.

  • http://georgerebane.com/ George Rebane

    “Capitalism isn't evil. It can do great things …” Indeed it can and has beyond measure. But in its true expression, capitalism will always ferret out the art of the possible, as does politics. It is the role of a strong yet minimalist government of the people to set and enforce the rules by which capiltalism will play. And when capitalism errs, don't blame it because it did only what it was meant to do – because it will run wild. Look at government and its electors, it is they who are charged with keeping the beast on the track of creating an unimagined quality of life for all. (In the words of the technician, from control and estimation theory we know that ALL high performance systems operate at the edge of stability. It is the low performers that muddle in the doldrums, deliver little, and promise nothing.)

  • http://www.aaronklein.com aaronklein

    Extraordinarily well put. I've often said that government regulators should focus on three simple things: ensuring that companies (a) tell the truth; (b) live up to their contractual promises; and (c) do not engage in anti-competitive behavior.

    If our government would focus on these three things, capitalism would be a self-correcting force for good in this country, and it would be a rising tide that lifts all boats — not to equality, but to the level that each individual wants to achieve through hard work.

    Great post — and thanks.

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