The Iron Law of Oligarchy in Capitalism: in free-market capitalism, companies compete with eac
The Iron Law of Oligarchy in Capitalism: in free-market capitalism, companies compete with each other for customers. Companies with better products/services/prices will eventually either drive their competitors out of business or buy them out. As this process follows its natural course, eventually entire industries are run by a tiny, tiny handful of huge corporations, who have successfully bought out all competitors who weren’t driven into insolvency. Eventually, the surviving corporations who are too big and powerful to takeover their competition or force them out of the sector come to dominate the entire industry/sector, settling into an oligarchy where they collude to determine prices, quality, and service levels that all consumers are forced to accept because there is no longer a competitive alternative to turn to. This is the inevitable, logical, and predictable result of a capitalist economic system.According to capitalism, competition drives innovation. So once an industry has evolved into its final form - an oligarchy - there is no longer any innovation to be expected from that industry.Is there any industry or sector not controlled by an oligarchy at this point? -- source link
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