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RE: A rebuttal to a socialist on the topic of monopolies.

in #economics8 years ago

I agree up to a point, but where you lose me is in one part you say monopolies are good because they lower prices, and yet in another you say a government should not be in the way of free enterprise so monopolies won't arise, which is it, should we look for lower prices for the population or free enterprise? The way I see it, monopolies aren't created by the government, to me governments are created by monopolies. Why do you think police and armies exist, to protect us? No they exist to protect exactly the people who own monopolies.
Don't think I'm a socialist, even though I do believe in more equality for everyone, I think I am a sort of anarchist but with some different ideas than I see posted by many here, these ideas might or might not be good, but they are what I have come up with after 55 years.

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Monopolies (a good or a bad thing) generally lower prices.
Lower prices are an effect of a Monopoly and that is good for the consumers of their goods or services.
Lower prices though, can make it harder for smaller businesses to compete with the monopoly which can be bad for consumers by reducing choice and innovation.
Governments enforce laws that favour monopolies where smaller businesses can not afford licenses, duties, and other taxes that governments enforce in order to participate in certain businesses.
Governments allow monopolies to grow this way and stifle competition. That is not good for communities.
If governments stayed out of the way and allowed a true free market, the market would control the creation of monopolies.
In a truly free market monopolies wouldn't really exist unless they generate exceptionally unique goods or services.

Monopolies control prices which is a different thing, once there is no competition they can ask for whatever price they want, I personally see no benefits to a monopoly, except for the owners. Again I disagree with your perception about government being the reason for monopolies, governments are owned by big business and they do what they are dictated, money talks.

I agree, big business and governments are like tag team partners with only their own interest in mind.
Both favour the other.
Those businesses provide kickbacks for government who provide protection and laws that assist the big business and restrict competition.
I don't think we have ever experienced a truly free market.

Very well said.

Governments are indeed a monopoly on the "just" use of force, that claim is essentially how they operate. The person I was speaking with had made claim about monopolies that was untrue, and I was refuting it. I would not claim that the way prices are lowered and by whom is a desirable end, but in general it is good for prices to be lowered. Thank you for your response, and I am encouraged by your objective approach to everything!