A Quote by Ludwig von Mises
The public firm can nowhere maintain itself in free competition with the private firm; it is possible today only where it has a monopoly that excludes competition. Even that alone is evidence of its lesser economic productivity.
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If a company is not a monopoly, then the law assumes market competition can restrain the company's actions. No problem. If a monopoly exists, but the monopoly does not engage in acts designed to destroy competition, then we can assume that it earned and is keeping its monopoly the pro-consumer way: by out-innovating its competitors.
The competition of social power with State power is always disadvantaged, since the State can arrange the terms of competition to suit itself, even to the point of outlawing any exercise of social power whatever in the premises; in other words, giving itself a monopoly.
In the whole history of capitalism, no one has been able to establish a coercive monopoly by means of competition in a free market...Every single coercive monopoly that exists or ever has existed...was created and made possible only by an act of government...which granted special privileges (not obtainable in a free market) to a man or a group of men, and forbade all others to enter that particular field.
I believed that our own public would keep this in mind even in this serious crisis, and stand firm if only we at the front continued to stand firm too.
Whereas a competitive firm must sell at the market price, a monopoly owns its market, so it can set its own prices. Since it has no competition, it produces at the quantity and price combination that maximizes its profits.
Maintain a constant watch at all times against a dogmatical spirit: fix not your assent to any proposition in a firm and unalterable manner, till you have some firm and unalterable ground for it, and till you have arrived at some clear and sure evidence.
The truth is that economic competition is the very opposite of competition in the animal kingdom. It is not a competition in the grabbing off of scarce nature-given supplies, as it is in the animal kingdom. Rather, it is a competition in the positive creation of new and additional wealth.
It is not competition, but monopoly, that deprives labor of its product. Destroy the banking monopoly, establish freedom in finance, and down will go interest on money through the beneficent influence of competition. Capital will be set free, business will flourish, new enterprises will start, labor will be in demand, and gradually the wages of labor will rise to a level with its product.
The ultimate consequences of the individualist spirit in economic life are those which you yourselves, Venerable Brethren and Beloved Children, see and deplore: Free competition has destroyed itself; economic dictatorship has supplanted the free market; unbridled ambition for power has likewise succeeded greed for gain; all economic life has become tragically hard, inexorable, and cruel.
Unless there is free and fair competition, there can't be healthy economic development. And what we have in Burma now is not an open-market economy that allows free and fair competition, but a form of colonialism makes a few people very, very wealthy. It's what you would crony capitalism.
I recall a conversation with the CEO of large electrical equipment MNC in which he began by asking me to guess how many innovation centres his firm had around the world. My guess was nowhere near the 160 that turned out to be the answer. Not surprisingly this CEO recognized that his firm's ability to innovate was being hampered by the huge size of their footprint which brought few benefits as it was inefficient, there was duplication across sites and competition between them. In this and most other cases, the costs of the expanded footprint outweigh the benefits.
Competition is the most promising means to achieve and secure prosperity. It alone enables people in their role of consumer to gain from economic progress. It ensures that all advantages which result from higher productivity may eventually be enjoyed.
Like many businessmen of genius he learned that free competition was wasteful, monopoly efficient. And so he simply set about achieving that efficient monopoly.
Somehow, people act like I have no competition, but the thing is, the competition is so good that it forces me to be better than I even thought was possible.
Whoever claims that economic competition represents survival of the fittest in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics.
Whoever claims that economic competition represents 'survival of the fittest' in the sense of the law of the jungle, provides the clearest possible evidence of his lack of knowledge of economics.
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