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View Diary: The Myth of the "Consensual" Marketplace (124 comments)

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  •  Monopoly (8+ / 0-)

    Monopolies maximize their income by producing less of the things they control.  That insight tells us a great deal about the economy in which we currently live.

    •  Yes. Yesterday I was listening to a representative (3+ / 0-)
      Recommended by:
      Troubadour, salmo, dfarrah

      of the plywood manufacturers saying that they can't crank up their production to meet current demand for several years. I thought to myself, well why would they?

      Poverty = politics.

      by Renee on Sun Mar 24, 2013 at 03:06:10 PM PDT

      [ Parent ]

      •  They have to eventually. (3+ / 0-)
        Recommended by:
        Renee, salmo, dfarrah

        Ultimately the amount of profit they extract through monopolism makes the industry attractive to innovative new entrants who could offer lower prices and still make massive profit margins.  But that's only over the long-term, so Big Business plays this game where they go through cycles of price gouging followed by undercutting to make sure no competitors can enter the market.  

        The entire nation of China plays this bullshit game with the whole world, most recently by churning out a vast oversupply of solar panels in order to destroy solar manufacturing in every other country.  After they've swept away their competitors, then they start jacking up the prices and gouging everyone until the cycle repeats.

        Business doesn't distinguish between making money and taking money.

        by Troubadour on Sun Mar 24, 2013 at 04:18:52 PM PDT

        [ Parent ]

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