How can you manipulate the market when there are strong property rights?How does that prohibit market manipulation?
Why couldn't they?It's simplistic to say any company can compete in a free market provided there is no government interference.
But none of these things violate property rights. To argue against this, would be to argue that winners should make just as much as losers. There is an advantage to winning otherwise no one would try to win.First to market has an advantage and can run at a loss to prevent competition. Existing companies with large bankrolls can move into new markets and crush newer competition through price wars because businesses will always seek to limit competition.
The incentives behind winning are correct. It's what keeps us from becoming lemmings.
The former is true and makes my case. The latter is a non sequitur.In theory, government regulation is supposed to limit that, but our legislators are bought and paid for so it never works as intended. However, with no regulations, monopolies would cripple our economy.
Monopolies have always been government granted. The very first monopolies were patent monopolies. Only one producer of a good allowed BY LAW. You must be using another definition, because again, you're arguing against very successful winners. Perhaps Michael Jordan had an unfair advantage in the NBA. Maybe we should have made him play without shoes, or taken everyone else off the Bulls to make it more "fair" for the rest of the NBA.
If you want to claim that a business is doing nefarious things, and I will agree that a great many are as evil as government, then talk about what they have done wrong. Words like "monopoly" are weasel words in these debates because they infer wrong doing without explaining precisely what the wrong doing is.
There is nothing wrong with being first to market, crushing your competitors with more capital, more hustle or more good fortune. Let's not imply there is.
Crony capitalism is specifically the combination of state and business interests. It is a very specific form of corruption we are discussing. What makes crony capitalism unique, is that the government has the ability to tax, which means they can forcefully take money from you, and give it to select businessmen, instead of those businessmen having to compete in the marketplace for your money honestly. We all abhor this. The problem isn't that businesses want profits. We all want profits. The problem is that because government has this godlike authority to take from people without any limit, they create an unfair advantage for companies like GE that don't pay taxes but get lots of government contracts. It's basically a direct wealth transfer from the people to GE, and the government is the facilitator.Because crony capitalism is just another form of corruption.
Until people address the government's role, it will continue. And I only see two solutions.
1. Elect angels.
2. Reduce government's power over the economy.
There is a difference between a natural barrier to entry, like you being more handsome than I am, and being able to attract a better mate, than artificial barriers where you prohibit me from being able to talk to single women at all.The profit motive will ALWAYS lead to market manipulation and barriers to entry being raised.
What government regulation does, is allow me to pay someone to cut up your face so I am the most pretty boy. That's clearly not a natural barrier to entry.
I agree with this, but as I wrote, these two types of barrier to entry are not equal, just as crony capitalism isn't just any form of corruption. Some things we can change (government, regulatory levels, taxes) and some things we can't (human nature).Any business seeks to create barriers to entry and it isn't always through regulation, particularly early on in a product life cycle.
I don't deny human nature. I'm talking about rational (means consistent with ends) ways of dealing with human nature.