The Japanese have an expression "kato kyoso" meaning excessive competition
which they vehemently oppose. Various state-capital arrangements and
cartel-like behavior reduce competition. Prices are high no doubt but
mass lay offs rare as well.
Anthony P. D'Costa
Associate Professor
Comparative International Development
University of Washington
1103 A Street
Tacoma, WA 98402, USA
Ph: (206) 552-4462
FAX: (206) 552-4414
On Fri, 11 Oct 1996, Michael Perelman wrote:
> We are taught that competition is good. Yet, we can think of a
> depression as a symptom of heightened competition.
>
> Within this framework, what happens during a depression is what happens
> with greater competition. Business gets busy laying off workers,
> installing new technology [yes, the depression was a period of rapid
> technical change], and finding ways to rebuild their profits.
>
> In terms of income shares, profits fall more than wages -- as we would
> expect with more competition. But the fall in workers' standard of
> living is a greater threat to their being [notwithstanding our imagery
> of flying bankers following the stock market crash].
>
> The government tries to avoid excess competiition [depressions] via
> government spending (i.e. military expenditures) and a lenient policy
> toward anti-competitive measures. Business will tend to organize and
> consolidate until they can enjoy a new period of lax competition.
>
> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
>
> Tel. 916-898-5321
> E-Mail [EMAIL PROTECTED]
>
