Economics: What a monopoly isn't.

[jediuser598]

Jedi - Right.

I think the waters get a bit muddied when you conflate government monopoly on violence to an economic monopoly. Government isn’t an economic institution, but rather a social one. It ostensibly serves the common good by protecting borders (though not in California apparently), providing public infrastructure, and negotiating international agreements among other things.

Economic monopolies exist when businesses (aka economic institutions) are enshrined as the sole providers of goods/services to a market. Monopolies are bad for the economy because these sole providers can set arbitrary prices and there will be no competition allowed to drive them down. This, like centrally planned economies, results in economic inefficiency. It’s bad stuff. But it CANNOT exist unless other parties are forbidden to compete against them.

The government can forbid this competition - but the businesses can’t. There’s no business I can start that will allow me to forbid competition. But if I can get the government to collide with me, THEY can forbid competition.

All institutions are social institutions.

[DBTrek]

Seems reductive.

Government’s primary function is to govern.
Businesses primary function is to generate profits.

They serve different purposes, answer to different pressures, measure success by different metrics.

In fact, many economic problems we encounter arise precisely because that which is good for markets and that which is good for re-election are diametrically opposed. If government and business were aligned in purpose this would never be th case.

[jediuser598]

Seems reductive.

Government’s primary function is to govern.
Businesses primary function is to generate profits.

They serve different purposes, answer to different pressures, measure success by different metrics.

In fact, many economic problems we encounter arise precisely because that which is good for markets and that which is good for re-election are diametrically opposed. If government and business were aligned in purpose this would never be th case.

Government's primary function is to

establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity.

[DBTrek]

... ok.

Regardless - neither your definition nor mine include “generate profits” as a function of government. So my point stands.

[jediuser598]

... ok.

Regardless - neither your definition nor mine include “generate profits” as a function of government. So my point stands.

Your core assertion is that monopolies can't exist without governments. Governments only exist via institutions. Only humans have institutions, so monopolies don't exist outside of humanity. Your definition of monopoly is what?

If you stated it somewhere I missed it, apologies.

[DBTrek]

... ok.

Regardless - neither your definition nor mine include “generate profits” as a function of government. So my point stands.

Your core assertion is that monopolies can't exist without governments. Governments only exist via institutions. Only humans have institutions, so monopolies don't exist outside of humanity. Your definition of monopoly is what?

If you stated it somewhere I missed it, apologies.

A monopoly exists when a business is protected from competition. You can have 100% of a market (like the first general store in Idaho) and not have a monopoly (because a second general store can and will open). But if something prevents competitors from entering your market, then you're a monopoly.

If competition can occur, that market segment is not under a monopoly.

[jediuser598]

... ok.

Regardless - neither your definition nor mine include “generate profits” as a function of government. So my point stands.

Your core assertion is that monopolies can't exist without governments. Governments only exist via institutions. Only humans have institutions, so monopolies don't exist outside of humanity. Your definition of monopoly is what?

If you stated it somewhere I missed it, apologies.

A monopoly exists when a business is protected from competition. You can have 100% of a market (like the first general store in Idaho) and not have a monopoly (because a second general store can and will open). But if something prevents competitors from entering your market, then you're a monopoly.

If competition can occur, that market segment is not under a monopoly.

Monopolies only concern businesses? Only businesses can have monopolies?

[DBTrek]

No.

As you pointed out government operates by monopoly for obvious reason. But the thread title is ECONOMICS, so I’m talking about the cause and effect of economic monopolies, not the sovereignty of governments.

[jediuser598]

No.

As you pointed out government operates by monopoly for obvious reason. But the thread title is ECONOMICS, so I’m talking about the cause and effect of economic monopolies, not the sovereignty of governments.

So Economic monopolies only exist because of governments? Do economies exist that do not have governments involved?

[DBTrek]

Sure.

Economics is simply the allocation of scarce resources with alternative uses.

A medic tending the injured on an Afghan battlefield is practicing economics. Who gets the limited medical resources, and how will those resources be used?
Economics.