[lbo-talk] Re: Ok, I Need Some Education

[Wojtek Sokolowski]

Doug:
> But in many cases the "local" products were near-monopolies,
> protected against competition from imports. Even in the 19th century,
> the supposed heyday of competitive capitalism, many small firms were
> local monopolists, and competition didn't ensue until there were real
> national markets.
> 

Granted.  But that reinforces my point that it all depends how you
define the denominator.  And while we are at that, the 19th century
cartel system, or the Japanese keiratsu system is also a form of
monopoly. 

So the real issue is not that much the nominal structure of a particular
field or market, but the concentration of power.  Hegemony over multiple
nominally separate entities (e.g. via interlocking directorates and
"gentlemen's agreements") may not show up in concentration measures but
its effects are real and unmistakable.

BTW, I do not buy into the free market mantra that small and competitive
is beautiful.  Central planning can be viewed as a form of monopoly and
concentration of control, but it can be a very good thing indeed - for
one thing, it cuts a lot of transaction costs.

Wojtek