Post
Topic
Board Economics
Re: Capitalism and immorality
by
cbeast
on 04/06/2014, 11:55:29 UTC
If someone comes up with a good or service that is better than anything else sure. If they try to inflate the price other people will come up with a cheaper version forcing the first group to drop prices or go out of business. Monopolies are problems when states interfere with markets.  

What if the monopoly is supply-based? E.g. I own most of the watersources in a region. Or I own all the roads surrounding area x, so everybody has to pass through them?
And it doesn't end there. There are a lot of sectors where new companies are at heavy disadvantage. E.g. industries that require a lot of infrastructure like internet providers or energy companies.

Not all of them can be beaten by competition.

Competition still applies pressure.  I concede that the mechanic is less potent in these cases than in that of a widget manufacturer, but it is there.  Should such a monopoly push its advantage too far, I believe it will be beaten by competition.

You didn't address the examples of how competition can be there. They can't. They are no-win situations for competition. You are a loser in those situations. Just face it. In competition, someone has to win and someone has to lose. In a competitive world, in order for someone to live, someone else has to die.