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How about the capitalists use the state to squash new competition? There was article linked in this thread, for example about someone trying to startup and sell milk cheaper and the corporations passed laws to get it shut down.
capitalists in general lobby for and get a lot of privileges that makes it pretty hard for a new coop to compete.
And you and I both know the unregulated free market has never existed in history.
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Some capitalists will try to lobby the state for favors and protectionism. Not all. Ever heard of
James Hill? Your argument is great against having a central state capable of handing out favors to businesses, but not a good one against capitalism itself.