Yaron Answers: Couldn’t A Company Establish A Coercive Monopoly By Monopolizing A Natural Resource?
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The Uncompromised Case for Capitalism
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8 Comments to “Yaron Answers: Couldn’t A Company Establish A Coercive Monopoly By Monopolizing A Natural Resource?”
Excellent analysis, Yaron.
I would add, that the fundamental natural resource is our capacity to think. If people see a businessman making tons of money providing a useful good or service, the natural inclination of a free people is to use that service. If the business keeps its prices too high or does not keep improving its quality, it sends out a beacon to all potential competitors: BUSINESS OPPORTUNITY HERE!!
The more successful a business is, the more competition it attracts. The more competition, the more brainpower focused on getting the most for the least. The more brainpower, the more likely that some of these ideas will actually work and be brought to market. The free market economy is the best defense AGAINST MONOPOLIES. There is no better! And that is as it should be, because the free market protects individual rights and individual rights are good.
I agree. A lot of the panic over monopolies comes from the fact that animals are evolved/specialized around a single natural resource, and if goes, so does the animal. Some people don’t adequately separate this idea from the way people survive. I think this one separation could undermine a lot of the environmentalist movement.
Somehow the monopolist has a mind and somehow nobody else, customers and potential customere, dont have minds. The attacks on alleged capitalist monopolies are from headless Marxist chickens running around the barnyard in a panic.
Further, capitalist “monopolies” are temporary, relative to anything that may happen in the market.
I meant “and potential competitors.”
What’s sad is I’m sure a lot of people who saw the question or the answer would say, “oh yeah what about De Beers?” and then walk away with their fingers in their ears.
Monopoly or monopoly prices do not exist in a free market. I am the only me, and thus I charge a monopoly price on my labor? Useless distinction.
Yes, you do charge a “monopoly” price until someone else w/your skills is hired.
Further, monopoly is relative to a specific market and there is no objective way to justify one specific market is the one to condemn. Is Coke in the drink, soft drink or dessert market?
Although I agree with Yaron, I’d be interested to know his thoughts on De Beers. (Being a South African)