And now for the Marxist view

Apparently this is a direct quote:

monopoly produces competition, competition produces monopoly. Monopolists are made from competition; competitors become monopolists … monopoly can only maintain itself by continually entering into the struggle of competition

Methinks Karl was having a bad day with the housemaid or the boils perhaps when he wrote that.

And it leads one of the country\’s leading \”Marxist theoreticians\” to the conclustion that:

So competition isn\’t the cure – it\’s the disease.

If competition is the disease then monopoly must be the cure: a clear case of the cure being worse than the disease.

4 thoughts on “And now for the Marxist view”

  1. I love the assumption in this sentence:

    Had Cable bothered to read The Poverty of Philosophy, Marx’s critique of fantasies of a purified market economy, he might have learned that

    In fact in reality he might have learned that Karl Marx thought ….

    We all do this from time to time, but it is intellectually one of the weakest forms of argument X thought Y so it must be true. It is smi religious in its undertones, as in, those who access the holy texts have no other option than to believe. It is giving infallibility status to mere mortals, who are capable of error, however exalted their status.

  2. Nevertheless,since the capitalist system is near bust again,it might be as well to examine the notion that competition is the cure for everything and comes about naturally without regulation (contrary to Smith’s experience.)

  3. I agree with Serf. it’s a turn of phrase that reveals the whole man and undermines any credibility he might have had.

    But also Marx doesn’t seem so silly for once. Unrestrained competition will tend to produce a winner which can dominate its market and set prices, and which will then get inefficient and dull and won’t innovate, and so will open itself up to new competition (in the long run). We actively restrain competition, vet mergers, prohibit predatory pricing, etc, etc, to suspend the cycle, but all of that came rather later than Mr. M.

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