The Competitive Illusion

1. Introduction

A widely recognized and consistent consequence of market economics is the prevalence of so-called monopolies. Defined as the exclusive control of the supply of or trade in a commodity or service, the repeated occurrence of such perceived market-power concentrations is, in fact, not an anomaly or a side effect of market economics, as many classical economists would prefer to assume. Rather, it is an immutable, inevitable, natural gravitation, driven by the most sacrosanct incentives and procedures of capitalism itself.


This is a companion discussion topic for the original entry at https://peterjoseph.substack.com/p/the-competitive-illusion
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At its core, capitalism operates on principles that inevitably lead to wealth concentration. Monopolies and economic crashes are predictable outcomes of capitalist dynamics. Even models claiming to be more ecologically sustainable fail to address the underlying mechanisms that perpetuate inequality and environmental degradation.

While social democracy attempts to mitigate capitalism’s adverse effects through regulation, it can provide temporary relief and does not alter the fundamental nature of capitalism. Those who control monopolies and means of production often find ways to circumvent external regulations.

An efficient economic system should not create divisions based on wealth or rely on indefinite growth. Instead, it should promote self-sufficiency while ensuring a high standard of living for all individuals indefinitely. Such a system would prioritize equitable resource distribution and sustainable practices over unchecked profit motives.

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