Economic Solutions Meme #1
I saw this on facebook today:
My Reply to this meme
If you want a free market, it is your only choice. If you want to limit economic freedom, yes, there is a bunch you could do. In theory, in a free market, when someone is predatory, competition arrives. Someone will notice the products are overpriced and easy to make, and start their own company. (I have done this. Twice.)
This idea that the “invisible hand of the market will create competitors when companies are big and fat” runs into problems with monopolies, as with a monopoly new entrants cannot come into the field. There are also de-facto monopolies when the sheer investment to get started is too high (aviation and automotive come to mind). Still, with automotive and aviation, the very plutocrat’s that are disliked, such as Elon Musk and Richard Branson, tend to create the alternative companies that disrupt things.
Perhaps they don’t disrupt them enough, as they /tend/ to keep the capitalist profit structure intact — but that is not always the case.
Finally: Say you are going to vegas and playing poker. What would you prefer, a house that takes 5% of every pot or a house that takes 30%?
