Lies of the Capitalists: Capitalism Is Great Because of Competition and We Love Competition

The first part of the title is actually not a lie. Capitalism with vigorous or even extreme competition is quite a nice mode of development. It’s definitely great for consumers, offers great customer service, low prices and ferocious innovation and improvement of products. The attitude of a system with vigorous competition is not only the customer is always right but also adds to that I need to treat my customers better than my competitors.

So where’s the problem then? The problem is because the competition usually doesn’t last. As Marx noted and has been proven immaculately correct, capitalism tends towards monopoly over time as surely as day follows night. Vigorous competition is soon replaced by monopoly capitalism and Monopoly Capitalism is probably one of the worst modes of development known to mankind.

Every anti-monopoly business being harmed by a monopoly will turn pro-monopoly as soon as they get their own monopoly. And all businesses wish to be a monopoly. They all hate competition. There’s nothing a capitalist hates more than competition, which is part of the joke of capitalism, which sings the (granted, considerable) praises of robust competition, while all of the capitalists despise this very robust competition being crowed about.

Politicians and media outlets all claim to be pro-competition but they are all also pro-monopoly. The politicians are pro-monopoly because they are all whores for big business and are frankly taking open bribes from them. The media is pro-monopoly because the media only prints what its corporate advertisers want to hear (a pro-monopoly message) and also because most media outlets, as capitalists, of course long to be monopolies themselves. The fact that capitalists and their supporters rant and rave about how great capitalism is due to competition despite the fact that business and its paid propagandists all hate such competition is one of the worst lies of all of the capitalists.

 

 

 

6 Comments

Filed under Capitalism, Economics, Journalism, Politics

6 responses to “Lies of the Capitalists: Capitalism Is Great Because of Competition and We Love Competition

  1. Mayur Varshne

    Pure competition is at the heart of capitalism. Gaming competition is one thing but killing competition is another. Of course, both are unfair and bad, in varying degrees.

    This is exactly where the State comes into play: conceiving, developing and maintaining free competition.

    If pure competition can exist only in theory then it is the failing of the State, and not capitalism.

    Another good reason to realize, how deeply influential the State really is, and, how necessary it really is to keep it under vigourous control. However, I do not deny the fact that the State only mirrors it’s own subjects.

  2. Mike H

    “Capitalism with vigorous or even extreme competition is quite a nice mode of development. It’s definitely great for consumers…”

    I have never forgotten Mark Whitacre in the ADM price-fixing case:

    “In the case involving Archer Daniels Midland, we got the evidence on video tape because we had an informant among the conspirators. On that tape, executives of a Japanese firm, a European firm, and the American firm are seen. One says: ‘The problem is that we don’t trust each other. If I say the price is $80, my customer will tell me I can get it for $75 from you. And we’ll fall for that if we don’t trust each other.’ One of the Archer Daniels Midland executives says: ‘This is crucial to the way we do business. The customer is the enemy. The competition is your friend.’ (http://knowledge.wharton.upenn.edu/article/anti-trust-enforcement-consider-the-alternative-says-joel-klein/)

    Whitacre’s own story: http://archive.fortune.com/magazines/fortune/fortune_archive/1995/09/04/205890/index.htm

  3. The problem is that some goods and services are absolutely necessary to have. That allows the firms to largely do what they want with price and sometimes quality.

    Goods and services pertaining to a specific company become even more necessary and more expensive.

  4. Jason Y

    Civilization normally just boils down to brute power. In that case, the royal way tyrannical but at least, honest.

    • Mayur Varshne

      Definitely not brute force. More about co-operation, sophistication and hard work. Of course, there is nothing much for the simpletons and the pussies.

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