Comrade
Senior Member
wade said:Comrade,
Profit margins are not profits. Margins may be lower, but total profits are higher.
I guess you haven't told me what an inelastic demand curve looks like yet.
So what's the point in me discussing economics of the oil market with you? Just tell me you don't know and I'll try to explain, if you want.
I admit my statement about capitalism is rather unilateral. The fact is we do not have unrestricted capitalism.
Agreed.
But the point is, the realtively unrestricted capitalism we do have is leading to a rather small number of corporate entities becomming more and more powerful. And, as these entities become more and more international rather than national, they become less and less restricted.
Hmmm... very rarely do monopolies emerge in a truly free market, and when they do, they are usually a product of national subsidy. Like Ma Bell.
Look at the total wealth created in the last 50 years, and look at the distribution of that wealth as it changes each year, and you can see that more and more of it is held by fewer and fewer people.
The disparity of incomes was drastic some 100 years ago, and horrendously obscene 80 years ago, and then most fair in the 50's and 60's and less fair in the 80's, and then more fair in the 90's.... just offhand.. I may be wrong... if you have a graph I'd like to see it.
Keep in mind also that never in history has any society survived two full generations with the top 1/2% of the population holding more than 34% of the wealth (not counting slaves). We passed that level over a decade ago. While this forumula for societal collapse has not yet been tested in the post-industrial world, it is something to think about as we continue to allow a higher and higher % of the wealth to be held by the top 1/2%.
Specifically who collapsed under such a disparity? Feudal Europe lasted 1,000 or so years that way. But I suppose you mean a Democracy. Name one Democracy who collapsed under this situation.