| This question <687|682> overall <680|682> Teight: <639|48>. |
| Question 738: How do competition and credit help in the process of centralization? |
| [681] Teight: Monopolies are evil. Many people in the economic industry view monopolies as devilish corporations that eliminate competition. Walmart is often the “whipping boy” by protesters because it eliminates small businesses that can't compete with their low prices. Centralization needs competition because it creates more efficient production that requires larger scales. Credit provides the financial funds that businesses need to keep investing in production. Competition and credit work in unison to continue the process of Centralization. |
| Hans: Your argument is that competition requires centralization (because competition requires higher efficiency, which requires larger scale production). The question was the reverse, how competition generates centralization (by the winner in competition swallowing up the loser). |
| By the way, Walmart is often criticized because much of its “efficiency” consists in low wages: they fire employees before they become eligible for health insurance, hire undocumented workers, force workers to work off the time clock, etc. Wages, health insurance, pension benefits, should not really be considered a cost of production. They are a benefit of production. |
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