Anonymous
Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

Why don't more people realize that competition and captialism prevent monopolies while government protects the?

If john doe buys every gas station in Averageville and charges an unreasonable price for gas, the only way he can keep out competition is if he can convince the city leaders to pass zoning laws and ordinances that make it too costly for start up businesses to get going.

If John Doe lowers his prices to reasonable rates to prevent competition, then there is no problem as the customers win, but that still does not prevent competition if Jane Deer wants to open a gas station.

Monoplies or companies "too big to fail" can only exist if the government protects them or gives them unfair advantages or makes it too hard for start up businesses to get going and offer competition.

This is why big business loves regulations - they are already established and regulations are harder on start ups.

Update:

Republican I - "nothing but monopolies" care to back that up? Only one rail road? Only one steam ship company? Only one contractor? Only one steel company?

the GNP increased 8 fold the 2nd half of the 19th century.

Update 2:

Wal Mart and Best Buy are not monopolies! They compete AGAINST each other for electronics and media!

ever heard of Target?

there are still thousands of mom and pop stores.

Wal-Mart and Best Buy got big because they gave customers what they wanted.

Also, if the minimum wage goes up, who can absorb it more easily - Wal Mart with its very low overhead or the mom and pop store?

Update 3:

Wal Mart has never driven one single company out of business.

Customers do of their own free will.

Update 4:

so no one can start up a company and challenge microsoft?

ever heard of apple?

11 Answers

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  • Anonymous
    1 decade ago
    Best Answer

    In the eyes of the media, libs & most of the public - it's failed. Of course, they don't realize it isn't true capitalize thats on the rrocks thanks to excessive gov't intervention. We've had pseudo-socialism for decades. Fannie & Freddie are prime examples.

    So, altho' I agree with you, the powers will not let it regain its rightful place anytime soon. & we'll be worse off for it.

  • 1 decade ago

    If Walmart has been around 60 years ago they would have run every single business is every town out of business. They would have been in financial marketing, been the only bank in town, have th only doctors, be the only place to buy cars and China would be 100 times more powerful than they are now...No, the government would have broken Walmart up to as it probably will some day.

    Microsoft, a company I will buy NOTHING from did practice extreme monopolistic policies by not permitting manufacturers to offer other operating systems or browsers because they held such a HUGE advantage over everyone else. Where was "regulation" back then to stop them from burying Linux or Sun?

    You obviously don't pay one iota's bit of attention to history.

    If Republicans are so for free markets and unfettered competition then please explain why illicit drugs aren't legalized and just allow the markets to determine what happens? Instead top republicans invest extremely heavily in prisons and push more "tough on crime" agendas which do NOT promote competition and instead punished the small time drug dealers and let the big guys walk free.

    Why stop things like genetic stem cell research and allow the markets to determine what happens?

    You want free markets only for things you want an if you don't like it then shut it down completely..

  • 1 decade ago

    That's a common misconception: that capitalism prevents monopolies. Quite the opposite is true: is it not the holy grail of any corporation to obtain and maintain an UNfair advantage over its competitors?

    Seems you must have missed that day in economics class.

    You see, you could learn from the Japanese about the effects of unregulated capitalism. They charged very high prices for electronics in Japan so they could dump electronics on America below costs. This allowed them to compete UNfairly against the American electronics manufacturers. After a couple of decades of this, there were almost no American electronics manufacturers.

    Same is true by region. Wall Mart has a habit of moving into an area with initially below cost prices on everything that is already offered by other local merchants. Thus, Wall mart drives them out of business. Then they raise their prices up and use the profits to subsidise expansion into new markets where they do the same to them too.

    Sure, you get great prices for the first few years. but then the prices ratchet up to where they were before they moved in. But by then, there's no locak competition, you can't go anywhere else, and they fleece you to pay for the destruction of the mom and pop stores in another local area.

    It's really a brilliant business model based upon pure capitalism. And you really should study up on such things before you speak out of ignorance.

    "the GNP increased 8 fold the 2nd half of the 19th century" So your entire definition of economics is based on GNP? Funny, I thought it was a SOCIAL means of production and consumption. In that same time frame, by how much did the average person involved increase their standard of living?

    Oh, that's right, their standard of living DECREASED during that time. Must be why you failed to mention it, right?

  • cantcu
    Lv 7
    1 decade ago

    You are wrong. They love to deregulate so they can do anything they want.

    There is a law about stopping monopolies, however 1 or 2 men own almost the entire media network, Kellogg's owns 3/4 of the cereal market!

    Tell me, how does a small business on main street compete with Walmart and Best Buy?

    We need to break them up, not let more hatch! When is the last time you heard of the government BREAKING UP a monopoly?

    Sorry, you have it backwards! That is why the majority of small business fails. They can't compete!

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  • A monopoly or massive corporation can easily destroy all competition. Microsoft did just that with other browsers, by bundling their own Internet Explorer with the operative system.

    If they cannot obliterate the opposition, they can buy it out, like General Electric has been doing for the last 20 years.

    Laws to prevent monopoly don't work either. All they have to do is set up a corporation under a different name to buy the opposition and keep the ghost companies floating around, without producing anything.

  • r1b1c*
    Lv 7
    1 decade ago

    That is why just yesterday the EU again filed a lawsuit against Microsoft for unfair practices....

    When a company gets that big it can take loses to prevent startup companies from becoming a threat, once the threat has been eliminated they go back to the old standards. If you don't believe that just ask any Netscape executive or shareholder.

  • 1 decade ago

    That is a ridiculous scenario.

    Gas stations make about a penny per gallon on gas.

    Oil companies fix the price at the top and buy out other oil companies to do it.

    Under Bush they OWNED the government.

  • Anonymous
    1 decade ago

    "Monoplies or companies "too big to fail" can only exist if the government protects them or gives them unfair advantages or makes it too hard for start up businesses to get going and offer competition."

    I don't agree. Study the history of the Sherman anti-trust act.

  • 1 decade ago

    Simple, comes down to education. What is being taught in our schools? Socialist attitudes that deride our Constitution. Too much diversity on the agenda and not enough other education.

  • 1 decade ago

    You have no idea wat was going on 120 years ago. There were no regulations and there were noting but monopolies.

    You give a good theory and have no evidence to back it up.

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