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21 sats \ 9 replies \ @DawnoftheDead 16 Aug \ parent \ on: Are Monopolies Always Bad? econ
There is no clear definition of a monopoly and people who try to define them usually refer to within a geographical area.
If you are allowed to do this then for example if a town has 1 dentist and 1 doctor, each one has a monopoly?
But there are also about 200 sovereign governments in the world, so not even government is a monopoly. So i think talking about monopolies is kind of silly when they dont exist?
I disagree on the definition not being clear. I think people do apply it far to broadly.
monopoly
noun
- Exclusive control by one group of the means of producing or selling a commodity or service.
- A company, group, or individual having exclusive control over a commercial activity.
- Exclusive possession or control.
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Are there any examples of this?
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You can't be serious.
Answered elsewhere but I have no problem with natural monopolies. They are destroyed naturally when the monopoly starts to abuse their position. I have a problem with the state monopoly on violence that creates privileged positions and monopolies. The state at best is a gate keeper centrally planning the economy.
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Why make a distinction between a natural monopoly and a state monopoly. Its unspecific and pointless? No offense.
I understand "state monopolies" are a problem because of the inherent violence, so it has nothing to do with a monopoly? Its the violence that is the problem? In which case why talk about monopolies then, they dont exist. The violence does, i assume. Do you know what i mean?
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I don't think it is silly at all.
In a geographic area like a county your local government or state government is keeping competition out of the area and harming the public.
Moving to another country is no small effort and you just trade one monopoly for another. And the state holds multiple monopolies at once. It would be one thing if they were just arbiters of law or defense. Pointing to invisible monopolies is a way to shift your thinking. Most people instinctively see the problem with monopoly. But they think we should use the state monopoly to fix the problem. If there were not state monopoly I think you would be correct.
If you only have one doctor in a town then it is likely that is all that area can support. It is possible the same is true in many cases. That's fine. It doesn't matter IMO. But when an outside force (the state) is using their monopoly position to put their thumb on the free market (freedom) then we have a problem
The truth is the most democratic thing ever is free choice. The free market. Each person deciding how to use their earnings (life energy). The state is a mostly uninterested third party overseeing and manipulating free markets.
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government is keeping competition out of the area
How does it do this?
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Are you not familiar with how governments do this?
- Power companies have a state enforced monopoly over a geo area. The state requires licenses and approvals to operate
- Hospitals: Many if not all states in the US have boards that decide and approve or deny when a company wants to build a hospital.
- Law enforcement: Only government entities are allowed to operate as law enforcers. Private security exists but is extremely limited.
In general the governments (local, state, national) are gate keepers for almost every business sector. In some sectors they restrict the free market creating monopolies. Its central planning. In some cases like your example a dentist in a small town may be the only dentist the market would support. No need for the state to restrict it.
I'm not suggesting regulation is not of benefit. It is. But we have a monopoly on regulation instead of a free market for governance and regulation. The state is the "invisible" monopoly.
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I forgot the obvious example: local cable companies!
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Power companies aka someone deciding to generate electricity and sell it has to get approval from the government? Why doesn't he just generate electricity and sell it
Government will shut him down? Why would he let them do that?
Im not sure we are talking about monopolies anymore but i g2g
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