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Milton Friedman famously claimed monopolies/cartels would not exist without government assistance and that there are only 2 examples of private monopolies that
by dandare 10y ago
Milton Friedman famously claimed monopolies/cartels would not exist without government assistance and that there are only 2 examples of private monopolies that lasted long period of time (De Beers and NYSE). I suppose he was very wrong. https://www.youtube.com/watch?v=tdLBzfFGFQU https://www.youtube.com/watch?v=tdLBzfFGFQU
- yummyfajitas 10y agoThe article suggests Friedman was right - this cartel was very short lived. "Powerful and influential though it was, the Phoebus cartel was short-lived. Within six years of its formation, the cartel was already starting to struggle." Friedman was also right that the cartel existed primarily due to government assistance: "GE’s licensing of its basic lightbulb patents gave rise to yet more alliances, most notably the powerful Patentgemeinschaft (“patent pool”)..."