I always find this line of thought interesting. Because it implies the manufacturer has all the power. But they don't. The consumer does.
Ultimately the manufacturer wins the horse-shoe battle because they are cheaper. And the consumers in the village prefer cheap shoes to locally made (expensive) ones.
Fundamentally consumers like cheap stuff. Manufacturing shifts happen because as soon as there's a cheaper output, you've won. Consumers will reliably switch to cheap. At the start there may be some brand loyalty, there may even be a quality difference, but both those erode quickly.
Lots of people promote the idea of buying locally, even if it's more expensive. But it's a hard message to sell, and a tough one to buy. I'm sorry for the blacksmith, but times are hard and I need my horses shod.
It's easy to blame capitalism or factory owners or foreign cheap labor or any other convenient political scapegoat. But the root of the problem is consumer preference for cheap (even if inferior) to the exclusion of everything else.
This is perhaps culturally most evident where the premise above is false. In the US for example food is low quality, but plentiful. In Europe food generally costs more, but is of a much higher standard. Portions are smaller. Quality is more important than quantity.
This is not by accident. Europe has deliberately fostered local food markets, local food production, and promoted a narrative around history and good production. Cheap food is available, but quality food has a strong foothold.
> In Europe food generally costs more
Is this actually true?
As to your general point, I don't think the blame can lie with the consumer as the consumer almost always does not have the expertise to recognize quality and understand the consequences of buying lower quality. Nor can you expect everyone to be an expert in everything. Without that expertise, buying a more expensive product is a gamble while a lower priced one is at least a known quantity even if it isn't the theoretically best deal.
No, 10-15% higher in the US, even when they have lower quality and consume higher amounts of it.
Look up "race to the bottom", a term that describes lose-lose situations resulting from rational market dynamics.
But, of course, there's no law of nature saying that we have to organise our society according to "rational" market dynamics. Many writers (famously Adam Smith) have opined on the subject.
> I always find this line of thought interesting. Because it implies the manufacturer has all the power. But they don't. The consumer does.
There is difference between the political power and the economical power. The economical power of the aggregate consumer is vast, but it's unconsolidated, and doesn't usually translate into the political power. The economical power of several centralized/monopolized producers is also vast, but it's consolidated and usually does translate into the political power. Plus, you know, class consciousness and all that — the gentlemen and the nobles in the Parliament may bicker and backstab each other, but the moment the peasants revolt against the Enclosure Acts, they put their differences behind them and start the hangings.
> Ultimately the manufacturer wins the horse-shoe battle because they are cheaper.
Yeah, but they can speed their victory up by paying the legislature (or straight up being a large part of that legislature) to crack down on those small-scale manufacturers. License the blacksmithing itself, require obtaining certificates of quality for horseshoes for sale, and tax shoe-fitting unless it's done with the authorized horseshoes — and that's only barely scratching the surface.