CDZ Should Government Break Monopoly?

[grbb]

These Professors Make More Than a Thousand Bucks an Hour Peddling Mega-Mergers

As a libertarian I would say it's none of government bizs. After all US need competitive edge when it compete against China. Economic of scale may be one of it.

Most marginal cost of stuffs go down when production go up. Most bizs are meant to be monopolized.

What do you think?

 

[ScienceRocks]

OF COURSE. READ HISTORY to realize the corporations will eat everything up until no one can break into the "field" or sector.

 

[grbb]

There is a part of history that I have a hard time understanding. How come a kartel preserve it self? If price is too high, why can't people just compete?

 

[FA_Q2]

There is a part of history that I have a hard time understanding. How come a kartel preserve it self? If price is too high, why can't people just compete?

Because when you own the market you can make it impossible to do so.

If I own all the mines that produce a specific material then there is no way for anyone to break into the market. if I use my size to leverage suppliers making agreements that they will not supply my competition then no one can break into the market either. If I own the means of delivery of a product (as the phone company used to) then there is no way for anyone else to enter the market.

There are many reasons that a monopoly may form. The one thing that we know is that monopolies are NOT conducive to a free market - they are the antithesis of one.

 

[grbb]

There are 2 sides here. Economic and "ideology"

Saying that wallmart cannot ask for better deals from their suppliers is kind of strange. Actually non compete agreement are done all the time. An agent in one country will be the only one selling that product in that country. Otherwise the agent won't spend money building the brand of the product.

How many companies can sell microsoft words? Only microsoft.

Should that be allowed? Well, I think so.

Economically, it's not that easy to lock people out. Look at Opec. They tried to limit oil production and raise the price. How do they limit it? By controlling oil field. How do they control oil field? Militarily.

Then we have this nice ISIS that capture oil and sell that dirt cheap. He he he he... New players always come to help customers.

 

[FA_Q2]

Wall-Mart can ask for better deals. What they cannot do is demand that they are the sole outlet for all those products precluding the possibility of competition. There is a vast difference.

Microsoft 'words' are copyright - another necessity in a functioning capitalist economy though our current copyright/patent laws are asinine and stifle innovation as much as spur it.

OPEC is actually a rather good example - they have controlled oil prices for decades. ISIS is not changing that reality.

 

[2aguy]

These Professors Make More Than a Thousand Bucks an Hour Peddling Mega-Mergers

As a libertarian I would say it's none of government bizs. After all US need competitive edge when it compete against China. Economic of scale may be one of it.

Most marginal cost of stuffs go down when production go up. Most bizs are meant to be monopolized.

What do you think?

As Ayn Rand pointed out...the only real monopoly possible is the government......every other business is subject to competition....

 

[grbb]

Give me one monopoly that happens without government.

 

[sakinago]

OF COURSE. READ HISTORY to realize the corporations will eat everything up until no one can break into the "field" or sector.

In history, when have these monopolies formed without the help of government? And even so those monopolies have been few and far in between.

Too big to fail is not capitalism, that's socialism, government swooping in for the rescue. In capitalism there is no such thing as too big to fail. The big guys fall when they make bad business decisions or get replaced by something better, this happens periodically and naturally in capitalism. When the big guys fall, it gives the little guys an opportunity to get bigger, and creates a ladder up.

 

[Bush92]

These Professors Make More Than a Thousand Bucks an Hour Peddling Mega-Mergers

As a libertarian I would say it's none of government bizs. After all US need competitive edge when it compete against China. Economic of scale may be one of it.

Most marginal cost of stuffs go down when production go up. Most bizs are meant to be monopolized.

What do you think?

Competition is what dries the free market. If you have a monopoly...you do not have a competitive free market. So yes...monopolies need to be broken up.

 

[D Truth]

These Professors Make More Than a Thousand Bucks an Hour Peddling Mega-Mergers

As a libertarian I would say it's none of government bizs. After all US need competitive edge when it compete against China. Economic of scale may be one of it.

Most marginal cost of stuffs go down when production go up. Most bizs are meant to be monopolized.

What do you think?

The government is the monopoly. You are ok with that missus "libertarian"?

 

[sakinago]

These Professors Make More Than a Thousand Bucks an Hour Peddling Mega-Mergers

As a libertarian I would say it's none of government bizs. After all US need competitive edge when it compete against China. Economic of scale may be one of it.

Most marginal cost of stuffs go down when production go up. Most bizs are meant to be monopolized.

What do you think?

Competition is what dries the free market. If you have a monopoly...you do not have a competitive free market. So yes...monopolies need to be broken up.

Did you mean drives? You said dries the free market, but in context that didn't make much sense.

If so, yes you are correct, competition does drive the free market system. My point was monopolies are very hard to create in a free market system and almost 100% of the time monopolies arise with the help of the government and cronyism, which is not free market economics. There are times when banks can help create monopolies for their own interests, but it's much harder to do in this day and age than it was 100 or 130 years ago, when there so many more people with enough money to get into an industry and create more competition (in a free market that is). Which I contend we've been sliding further and further from free markets for a long time now.