Tag Archives: captitalism

THE TRUTH ABOUT CAPITALISM

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Capitalism was designed to create just competition between many competing businesses. Businesses could provide better customer service, a product at a better price, or an improved quality product all resulting in efficient exchange and the most profitable business would grow and prosper.

Monopoly or near monopoly businesses mean less competition, being able to buy raw materials at unjust lower prices, not being so innovative or producing poor quality goods which don’t last as long, buying up smaller businesses to eliminate new competition, setting prices as high as they want, demanding unreasonable low prices from suppliers who are totally dependent on the monopoly, less choice in the variety of products offered, and colluding with other near monopoly businesses to fix prices.

The only thing which is keeping prices for information, goods, and services low is international business competition but there too capitalism will no longer be functional with monopoly international banks and corporations.

There is also less competition for capital intensive companies like airline manufacture where it is very difficult for a new company to try and compete with a novel airline improvement or design since startup costs are in the billions of dollars.

If you had a great new business which was making a big profit and growing quickly then you could go to the stock market and make it go public hoping to get more money for further expansion opportunities. Today there are still some rare technology IPOs which go public but are quickly bought up by larger technology companies to eliminate competition and give them a worldwide edge.

There is in fact a big monopoly of international banks and big money and fast computers manipulating the stock market causing much short duration volatility and making the stock market a gambling crap shoot with almost no opportunity of making money in the long duration. Stock price movement is rigged and for all practical purposes the movement is rarely tied to fundamentals or tangible assets.

The small business man and woman are also threatened with extinction because they can’t buy products and raw materials at the wholesale prices only available to big businesses or franchises and can’t compete with them.

Capitalism is still alive for the big money boys but is almost dead for the small investor and small business man or woman trying to make a logical business investment with little capital.

CONCLUSION:

Competition against very big business or monopolies is less likely and the benefits of capitalism are greatly reduced or even nullified. The business becomes a special interest with government supported laws that promote inefficiency and waste and don’t produce quality, durable, and long lasting products or services. Innovation or product improvement is also minimal. Profits become more important than customer satisfaction.

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