General Discussion
In reply to the discussion: Capitalism is NOT a dirty word. [View all]laundry_queen
(8,646 posts)I think it happens even with weakly regulated capitalism and is still a threat in regulated capitalism. If there are no monopolies and there is perfect competition, then there is no profit or growth for the companies within that competitive sphere. Competition destroys profit, and monopoly maximizes it. In our current system, there is no sane CEO that isn't going to trend towards monopoly because that is where the profit is. Plus, our markets are based on perpetual growth which is inherently unsustainable, but a company's only chance of survival is to continuously chase the growth of their profits. Without growth of profits, companies fail. Capitalism and the current financial market system are forcing companies into monopoly. The only other choice is forcing companies to stay smaller and encourage competition which, in the end, results in little growth or profit. That is why you are seeing the laws being ignored. Those who are in charge of making the laws and enforcing them benefit from this monopolized economy. Even with regulation, where we are now is always how it will end. That is why I'm in favor of a mixed economy - because regulation alone will not reign in the excesses of capitalism.