[quote]ironcross wrote:
[quote]orion wrote:
[quote]ironcross wrote:
[quote]ephrem wrote:
[quote]orion wrote:
[quote]ephrem wrote:
I’m not going to watch the lecture orion. No doubt it’ll be as onesided as your viewpoints.
Please give me an example of a failed monopoly or cartel when relevant regulations to prevent them were absent.[/quote]
But he brings several examples, I think Rockefeller who tried to build an oil refining monopoly in the US and a German cartel that tried to block an American entrepreneur from selling bromine in Europe by constantly undercutting him.
I think Rothbard also has several examples, it never works.[/quote]
When was this, 1860?
[/quote]
It does work:
Carnegie, Morgan, and U.S. Steel
Among the wealthiest and most famous captains of industry in the late 1800s was Andrew Carnegie. A Scottish immigrant, Carnegie turned his one Pennsylvanian production plant into a veritable steel empire through a business tactic called vertical integration. Rather than rely on expensive middlemen, Carnegie vertically integrated his production process by buying out all of the companies�??�?�¢??coal, iron ore, and so on�??�?�¢??needed to produce his steel, as well as the companies that produced the steel, shipped it, and sold it. Eventually, Carnegie sold his company to banker J. P. Morgan, who used the company as the foundation for the U.S. Steel Corporation. By the end of his life, Carnegie was one of the richest men in America, with a fortune of nearly $500 million.
Yes, Cargnegie succeeded in creating a monopoly.
Since the inception of corporations, they have been trying to take advantage of people, and the people they’ve taken advantage of have asked that they be made to pay what they failed to deliver on. The government stepped in because they were asked to:
http://www.jstor.org/stable/1322201?seq=7
This isn’t to say corporations are a bad idea. But when your job is to make as much money any way you can and the people in charge have gotten there through competition, you have to understand that they are going to be good at lying and good at cheating.[/quote]
What you fail to mention is that Carnegie slashed the price of steel rail by 90%, making construction, transportation and whatnot infinitely cheaper.
So, even if you think he had a monopoly, this monopoly was based on excellence and was never used to demand a premium.
The point that was made was that companies form cartels and monopolies to fleece their customers, which is something Carnegie never did and if he had tried he would have failed.
[/quote]
My point concerning monopolies is that they make it impossible for someone new to start up a business in the same market. Therefore, once a market is completely dominated by one monopoly, yes, there are lower prices for the people, but, if this happens in enough markets, you’re doing to have a huge divide between the CEO’s income, and those who work for him, which the guy on the bottom will never be able to overcome. No longer will someone be ale to get into that market as a low-income man, start a business, and eventually make more for himself. Therefore, if monopolies are allowed to exist, they would eventually exist in every market, and there would be an impossible divide between the upper class and the lower class.[/quote]
Excuse me, but why would you care whether there is a monopoly if it does the best job possible?
You are arguing as if your basic problem with this is not that Joe Sixpack might get fleeced, but that you might not get ahead. Totally fine, but however told you that getting to the top was easy was most definitely lying.
Anyhow, you might have a monopoly in one area, if the economies of scale are actually big enough to overcome the bureaucratic inertia of a large company.
Unless of course a technology comes along that turns your whole industries cost structure on is head. Or something comes out that makes your product as obsolete as the horse buggy. Or your CEO fucks up and other companies exploit that weakness.
In other words, a free market is always changing, always in flux.
To stay on top forever is next to impossible, this is not a marathon, this is a rodeo.