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Teucrian's avatar

Really fascinating glance at a thinker I knew nothing about, thanks John.

There's a parallel I think between monopolistic capitalism in the economic sphere and a disdain for constitutionalism and republicanism in the political one. There's a kind of folk wisdom in the sense of "really we just need to overcome all of this petty competitive squabbling and have some kind of monopolistic power so we can focus on actually getting things done."

That reasonably holds up to scrutiny as long as we begin with the premise that your desires are base, self-destructive and ill-informed, while mine are rational, forward looking and designed to create a better tomorrow.

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Stefan Szymanski's avatar

Really interesting! Not sure this is particularly germane, but it seems that the advocacy of monopoly capitalism reflects a fundamental misunderstanding of the economic theory. First, the theory of perfect competition states that in equilibrium "economic profits" are driven to zero - which is confusing since it does not mean that the return on capital is zero - capital earns the minimum necessary return to justify its use in a given activity. Economic profits are called "rents" to distinguish them from "normal" profit. Second, under almost any economic theory monopoly diminishes welfare - to sidestep this is just willful distortion. Third, these advocates ignore or reject the logic and consequences of market failure, even though it is embedded in the theory of perfect competition itself. I've always found it bizarre that so many on the right claim to take their cues from economic theory, while wilfully ignoring its logical consequences.

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