It always starts with entrepreneurial innovators breaking new ground and establishing new avenues for the expression of individual liberty and private initiative. Then, as soon as some of the companies established by those innovators grow sufficiently large and influential, the biggest protection rackets operating in their respective territories stop fighting them and proceed to corrupting them with subsidies, “public contracts”, unofficial monopoly privileges, etc.
Tag: monopoly
The Siren of Democratic Fundamentalism
Every economics textbook explain how market outcomes can go wrong. Externalities. Monopoly. Asymmetric information. Irrationality. Democratic outcomes can easily go wrong for all the same reasons. Is it possible that Scandinavians simply underestimate the severity of the disincentives their policies generate?
Two Tactical Reasons to Show Business Some Love
Most economists admit that business serves socially valuable functions. When I express earnest appreciation for business, however, my peers usually respond by mocking Ayn Rand. The sarcasm sings: “Oh, those heroic entrepreneurs!”
On Free Speech
Libertarian types are chomping at the bit to accuse Facebook, Twitter, et al, of violating free speech rights. The problem is, if these are private companies run by private individuals, then their “censorship” is not a free speech rights violation. QED. But there may just be a way in here: intellectual property.
Anarchism and Kavanaugh
Regarding Brett Kavanaugh, I’ve been wondering how I can blame the state for what we’ve endured these past weeks. I can safely say that without the state, we would have been spared the Kavanaugh episode.
The Cost of Everything
One thing most people overlook in the course of day to day life is the degree to which governments make everything we purchase far more expensive than it would otherwise be. Consider that every company that manufactures a product needs to first procure raw materials, shape those materials to their specific needs and combine those parts into the finished product, then distribute (transport) them to buyers/vendors who will then sell them to consumers.
On Monopoly II
I think everyone agrees that monopolies are bad for the economy (except the monopolists, of course). Why are monopolies bad? For starters, they have an incentive problem.
Outsourcing Censorship to Corporate Partners
I have great respect for private property and private businesses, but there can come a point at which a private business becomes a public corporation that is able to exist and grow primarily due to the protection and support of the state.
A Utilitarian Case for Incompetent Traffic Cops
Thank your lucky stars for inefficient law enforcement. When toleration fails, you’ll always be able to count on some room for social innovation. But when inefficiency fails, we’ll be in a much tighter spot.
New Tariffs Nothing to Cheer About
Some American workers are cheering President Trump’s new tariffs. They know not what they cheer. Tariffs are as bad for you and me — economically — as taxing corporations. It’s a great plan — if your goal is to economically cripple America.