An interesting observation from Lord Acton:
At all times sincere friends of freedom have been rare, and its triumphs have been due to minorities, that have prevailed by associating themselves with auxiliaries whose objects often differed from their own; and this association, which is always dangerous, has been sometimes disastrous, by giving opponents just grounds of opposition, and by kindling dispute over the spoils in the hour of success.
This passage by itself doesn’t argue for or against any particular alliance. It makes the point that alliances are advisable (as they must be if it is indeed true that defenders of liberty have never succeeded except by allying with defenders of something else) but also that they are extremely risky and sometimes extremely harmful. All facts worth keeping in mind – though by themselves they don’t offer any concrete guidance.
Tags: Left-Libertarian
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On a different note, I remember hearing an argument that the free market can’t handle already existing monopolies because anybody attempting to compete will lose because the rich monopolist can lower their prices to below profitable levels temporarily (just enough to push out their competitor). I’m not sure whether that’s true or not, but what is funny is that in the EU (that bastion of free enterprise all freedom lovers embrace) there is apparently a “Competition Commissioner” (I kid you not). Check out this passage:
“Given that Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for over five years, the size of the fine should come as no surprise,” said EU Competition Commissioner Neelie Kroes.
I wonder if the title of Competition Commissar is available.
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On a different note, I remember hearing an argument that the free market can’t handle already existing monopolies because anybody attempting to compete will lose because the rich monopolist can lower their prices to below profitable levels temporarily (just enough to push out their competitor).
David Friedman answers that argument in The Machinery Of Freedom. His objection is that selling below cost will cost the (former) monopolist more than the new competitor, because of the greater market share of the monopolist.
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I remember reading his argument but was unconvinced by it. If the monopolist is sufficiently large they can afford to run at a loss for awhile to beat out a small-time competitor. Plus, aren’t you assuming the price the monopolist charges everywhere is the same? If they only charge less at locations where the competitor has opened a store then they can continue charging monopoly prices elsewhere.
Anyway I just wanted to make the point that the EU are not “friends of freedom”.
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Anon73, monopolies can only continue to exist through force. People simply prefer to seek alternatives to a given product, for their own myriad reasons (aesthetics, price, quality, customized differences, ethos, etc.).
Take a relatively free society where one company has achieved monopoly thanks to thuggish laws, and then add the free market. The monopoly won’t be facing but one alternative product for a limited time—short enough to squash it, anyway—and then go back to “normal” before encountering yet another competitor. They will face competition from every angle all at once. High-end, pricier competition that threatens to beat them out on quality; low-end, cheap competition that threatens to beat them out on price; custom, niche-market competition that threatens to beat them out on the margins of their customer base; etc.
The possibilities are endless, and completely devastating, to a functioning monopoly which meets free market competition.
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At any rate I’m certain an alliance with people who think having a “Competition Commissioner” will guarantee competition will be fruitless at best, harmful at worst. It’s always frustrating when potential allies share the same end but have rotten means.
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