|Source of this photo|
The distributor controls the flow of goods for a profit. There are different ways to increase profits:
- Increasing efficiency
- Increase the flow by
- inciting consumers to buy more
- increasing the market by adding more consumers
- Force the producer to sell at lower costs
The best example is the Wal-Mart network, which is rightfully criticized for chocking producers and for spreading consumerism.
In a healthy economy the financier and the distributor have secondary roles. They are service providers between producers and consumers, they MUST NOT control/rule the economy. Economy is about production and exchange of value. If too much power is granted to distributors and financiers they will inevitably suffocate production forces and reduce society to agents of consumption. Evidence of the second effect lies within official reports that talk about consumers and tax-payers instead of citizens.
The multitude movement restores the role of the producer. This is a natural process as the new technology becomes ubiquitous. It is possible now for the producer to maintain direct relations with the consumers. The role of the distributor within the exchange mechanism is greatly reduced. We are heading toward a more healthy economy!