ComingUpForAir
Banned
- Joined
- Jun 12, 2009
- Messages
- 352
- Gender
- Undisclosed
- HSC
- N/A
haha...Actually, the objection I prefer to leap to is the natural tendency of markets to develop into a monopoly. This isn't a theory, it's a fact
Yes it's true that firms like to collude and raise prices, they do this by reducing their collective output below the profit maximizing quantity that would exist in a perfectely competitive market (i.e. if firms increase or decrease output, their profits fall).
What you fail to realise is that if each firm in the cartel is rational (i.e profit maximizing), it has an incentive to quietly increase it's individual output (as this will increase their profits), thus output on the whole rises, and the cartel will distergrate very quickly.
It's true that a monopoly can exist in 'the free market', but such cases arise primarily due to control of natural resources. Most monopolies arise due to artificially created 'barries to entry', i.e. cartels get the goverment to 'regulate' (by law) quotas/trade laws/'permits', etc. This is know as 'croney' capitalism, and would of happened alot in those places you mentioned (and of course also necisarrily happens in bad market socialisms).
(the arguments/theory is more complicated than this, but it gets very mathimatical). But in most modern democracies, indepedent goverment agencies, i.e our own ACCC, do a good job stopping cartels.
Basically, your 'facts' amount to fairly unsophisicated simplifications. But this is too be expected when people have these bizarre, black-and-white, straw man debates.
Labels and words like 'anarcho-capitalism', 'goverment', 'capitalism' serve no worthwhile purpose when discussing social policy, they provoke entirely different meanings when said to different people, are not grounded in reality (which is dynamic) and should be discarded.