mills@MIT-MULTICS.ARPA (08/05/86)
From: "Keith F. Lynch" <KFL%MX.LCS.MIT.EDU@MC.LCS.MIT.EDU>
One of the main points that opponents of pure capitalism
often make is that without government, there would be
nothing to prevent monopolies from forming and driving up
prices and reducing quality. Well, they are certainly
correct that monopolies drive up prices. And that they
reduce quality. BUT THE ONLY WAY MONOPOLIES CAN EXIST IS IF
GOVERNMENT MANDATES IT.
[emphasis added by John Mills]
WRONG. Monopolies can and would form under PURE capitalism. That is
why we have anti-trust laws. Once a large, wealthy person or business
controls most of a market, it is relatively easy to keep your current
market share and get most of the rest. This can be positive if they
use their profits to do more R&D than anyone and provide the most
price-performant products. It can also be bad if they simply buy out
the competition, sell products at a loss until there competition goes
under, or any number of other UNFAIR business practices. In my
opinion there would only be one computer company in the U.S. if not
the world if it were not for the U.S. anti-trust laws.
John Mills
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