4 ms·
You weren't a rube at all, that view of capitalism as being characterized by competitive markets is popular and the result of Milton Friedman style ideas being
by Barrin92 5y ago
You weren't a rube at all, that view of capitalism as being characterized by competitive markets is popular and the result of Milton Friedman style ideas being almost propagandized from the 80s onward.
His points in the book however do basically go back to Schumpeter who argued the same thing. That oligopolistic markets in which outsized firms earn excess profits, are significantly more dynamic than overly competitive market economies.
- zozbot234 5y agoThe economic definition of competition, beyond its simplest variety, allows for natural "moats" and differentiated firms. Looking for a "moat" is just engaging in competition on a larger scale than that of a single product - and the "excess" returns involved are ultimately a reward for good positioning. (Of course artificially-created 'moats' are a form of rent seeking and should be eliminated via antitrust regulation, but this can take some time.)