Statism, AC, and Corporatism- The End Result is the Same

[pvn]

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That is a key difference but it doesn't refute the consolidation argument. You give just enough people enough of the pie to shut them up. Increase barriers to entry in relation to productivity.

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How does one "increase barriers to entry" without government?

[Mempho]

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That is a key difference but it doesn't refute the consolidation argument. You give just enough people enough of the pie to shut them up. Increase barriers to entry in relation to productivity.

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How does one "increase barriers to entry" without government?

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Economies of scale, vertical integration, and horizontal integration.

- Invest in the capital necessary to produce goods at a low enough price so that it is impossible for a smaller company to produce the same good at a profit.
- Purchase or collude with distribution channels so that the competitor's product never gets marketed
- Control critical supply lines necessary to produce the product


These are just a few of the many possibilities.

[pvn]

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- Invest in the capital necessary to produce goods at a low enough price so that it is impossible for a smaller company to produce the same good at a profit.

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That's called "competition" and it's usually seen as a good thing for consumers. Inefficient competitors are excluded, their resources are then directed to more productive uses. I'm having a hard time seeing how anyone (other than the inefficient competitors themselves) would complain about this.

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- Purchase or collude with distribution channels so that the competitor's product never gets marketed

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So if I own a distribution channel, I should be required to make it available to competitors? Or parties I don't wish to make it available to? Nothing is stopping anyone from starting their own distribution channel, or using a competing distribution channel.

For an independent distributor to make an exclusive deal, the "barrier errecting firm" will have to pay a hefty amount (to convince that distributor to give up the business from the other competitors). This will make him overall less competitive in the market.

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- Control critical supply lines necessary to produce the product

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Ahahaha. Yeah. Google "hunt brothers".

[Mempho]

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[ QUOTE ]
- Invest in the capital necessary to produce goods at a low enough price so that it is impossible for a smaller company to produce the same good at a profit.

[/ QUOTE ]

That's called "competition" and it's usually seen as a good thing for consumers. Inefficient competitors are excluded, their resources are then directed to more productive uses. I'm having a hard time seeing how anyone (other than the inefficient competitors themselves) would complain about this.

[ QUOTE ]
- Purchase or collude with distribution channels so that the competitor's product never gets marketed

[/ QUOTE ]

So if I own a distribution channel, I should be required to make it available to competitors? Or parties I don't wish to make it available to? Nothing is stopping anyone from starting their own distribution channel, or using a competing distribution channel.

For an independent distributor to make an exclusive deal, the "barrier errecting firm" will have to pay a hefty amount (to convince that distributor to give up the business from the other competitors). This will make him overall less competitive in the market.

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- Control critical supply lines necessary to produce the product

[/ QUOTE ]

Ahahaha. Yeah. Google "hunt brothers".

[/ QUOTE ]

You are of the assumption that a better idea can still enter the market.

For instance (and this is the honest truth), I've had an idea for a better airline that would reduce prices and increase profits for well over 10 years. Guess what? That idea is going to die with me because there is absolutely no way that I'm going to be able to break into the airline business. I'm not going to tell anybody my idea (it's committed to memory and not on paper) because it is mine and I'm not giving it away since I spent a lot of time ironing out the details. My idea, while complex, would make air travel more accessible and more profitable. It's a win-win situation. Guess what? None of us are ever going to benefit from that idea because I am virtually locked out of the air travel business because of barriers to entry. How would that be any different in AC land?

There is no "entering" and "exiting" the market at will with barriers to entry even with better ideas. Socialism won't make the situation any different.

[mosdef]

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I am virtually locked out of the air travel business because of barriers to entry.

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I don't know if I would consider "no bank in their right mind will loan me the money I need for my crazy scheme" to be an unfair "barrier to entry" in the market.

[pvn]

[ QUOTE ]
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[ QUOTE ]
- Invest in the capital necessary to produce goods at a low enough price so that it is impossible for a smaller company to produce the same good at a profit.

[/ QUOTE ]

That's called "competition" and it's usually seen as a good thing for consumers. Inefficient competitors are excluded, their resources are then directed to more productive uses. I'm having a hard time seeing how anyone (other than the inefficient competitors themselves) would complain about this.

[ QUOTE ]
- Purchase or collude with distribution channels so that the competitor's product never gets marketed

[/ QUOTE ]

So if I own a distribution channel, I should be required to make it available to competitors? Or parties I don't wish to make it available to? Nothing is stopping anyone from starting their own distribution channel, or using a competing distribution channel.

For an independent distributor to make an exclusive deal, the "barrier errecting firm" will have to pay a hefty amount (to convince that distributor to give up the business from the other competitors). This will make him overall less competitive in the market.

[ QUOTE ]
- Control critical supply lines necessary to produce the product

[/ QUOTE ]

Ahahaha. Yeah. Google "hunt brothers".

[/ QUOTE ]

You are of the assumption that a better idea can still enter the market.

For instance (and this is the honest truth), I've had an idea for a better airline that would reduce prices and increase profits for well over 10 years. Guess what? That idea is going to die with me because there is absolutely no way that I'm going to be able to break into the airline business. I'm not going to tell anybody my idea (it's committed to memory and not on paper) because it is mine and I'm not giving it away since I spent a lot of time ironing out the details. My idea, while complex, would make air travel more accessible and more profitable. It's a win-win situation. Guess what? None of us are ever going to benefit from that idea because I am virtually locked out of the air travel business because of barriers to entry. How would that be any different in AC land?

There is no "entering" and "exiting" the market at will with barriers to entry even with better ideas. Socialism won't make the situation any different.

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So we're left with a "problem" which is still a problem under statism (of any flavor). In other words, the laws of economics remain intact under either system.

What was your point, again?

[mosdef]

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What was your point, again?

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He wants us to invest in his airline company. PM him for details.

[Mempho]

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I am virtually locked out of the air travel business because of barriers to entry.

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I don't know if I would consider "no bank in their right mind will loan me the money I need for my crazy scheme" to be an unfair "barrier to entry" in the market.

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So, in other words, I have to explain the idea that I won't tell anyone in order to prove it's not a crazy?

[Mempho]

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What was your point, again?

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He wants us to invest in his airline company. PM him for details.

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True. Just send me your bankrolls via Neteller. Oops.

[mosdef]

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True. Just send me your bankrolls via Neteller.

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I would, but I think there are too many unfair barriers to entry for your idea to work. Sorry.