For the first of all, I want to thank Tom and Gene for starting this
thread. It's been a long time since we had any conversations about the
economy here. I was getting fairly frustrated with the content of this
list.
The forces tending to increase competition in the United States were
deregulation, as Jim mentioned, and the pressure from imports. The
forces tending to diminish competition were intellectual property,
mergers, and possibly government contracting. In fact, as Jim seemed to
suggest -- if he didn't, he should have -- the pressures from
deregulation and imports have encouraged more mergers and acquisitions.
Anthony specifically pointed to this dialectical relationship.
I also believe that the degree of macroeconomic activity is a major
determinant of the level of competition. When the economy is booming,
there is relatively little competitive pressure. When the economy falls
into a recession or depression, competitive pressures intensify.
Jim also mentioned that wages are falling relative to labor
productivity. I associate this trend with intellectual property as
well. Labor productivity increases with the ability to mark goods up --
Nike shoes are an excellent example, but the same holds for Microsoft
software.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
