I’m familiar with the Marxian tradition, but it’s hard to think of a “monopoly corp” as “poor.”

 

I tend to react to the over-use of the term “monopoly”. Though it’s not like there’s a single definition of the term (handed down from on high by the gods or some convention of learned economists), “monopoly” literally means “single seller” (by implication, in a single market).

 

The term “monopoly” is often used as a way of criticizing the corps, going beyond the literal definition. But it’s also in the Marxian tradition that capitalist competition can be just as bad as monopoly, since both involve merely the distribution of surplus-value and both are based on exploitation (the production of surplus-value). In some ways, a capitalist monopoly can be better than competition, since it’s possible that a big firm can successfully be made subject to pressure from labor unions and progressive governments. A “monopoly” can afford to give up a little of its surplus-profits to clean up the environment, for example, while a competitive firm is so desperate to survive competition that it will resist to the end (unless all of the competitors are subject to the same regulation -- but somehow the little firms seldom see this and act as if they were the only ones subject to the law). (Of course, a big company is more likely to have political influence, too, while competitive firms try to unite politically.)

 

There’s another use of the word monopoly in Marxian political economy, i.e., that the capitalists have a monopoly on the ownership of the means of production and subsistence.

 

Jim Devine, e-mail: [EMAIL PROTECTED] ; web: http://myweb.lmu.edu/jdevine/

> -----Original Message-----

> From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of Charles

> Brown

> Sent: Friday, November 12, 2004 7:24 AM

> To: [EMAIL PROTECTED]

> Subject: [PEN-L] GM to lock in loan rates for 10 years

>

> Sounds like desperation.

> >

> > Michael Perelman

> >

> > ^^^^^^

> > CB: Like "Poor little monopoly corp" ...

> >

>

> GM's hardly a monopoly (exceed as loosely defined as "big"). It's facing

> all sorts of competition from Toyota, etc.

> JD

>

>

> ^^^^^^

> CB: Yes, "bigness" is part of this concept of monopoly. This is relative

> bigness, and, obviously adds to the company's ability to dominate in some

> economic arena.

>

> Are you familiar with the political economic tradition that considers that

> monopolization _increases_ , not decreases, competition in a number of

> ways

> ? It is termed monopoly competition and is more vicious than free

> competition. This tradition is specifically aware of the arguments you

> make

> against the use of the term "monopoly" to apply to a GM, but doesn't

> accept

> your conclusion, and thus continues to use the term "monopoly" as I do

> here.

>

>

> Or maybe you have a monopoly on the use of the term "monopoly".

>

> Here's one short statement of the idea of this nameless political economic

> tradition:

>

>

> 10. DOES MONOPOLY END COMPETITION?

>

> No. It reduces competition in the area covered by the monopoly, while

> accentuating it in other fields -- e.g., between monopoly capitalists and

> non-monopoly capitalists and between rival groups of monopolists in the

> same

> or different countries.

>

> ^^^^^

> CB: So, the idea of monopoly here does not exclude the possibility of

> competition with foreign monopolies , like Toyota. ( Although I haven't

> investigated the extent to which Toyota and GM may be linked )

>

> What is the nature of the competition between GM , Ford and Daimler-

> Chrysler

> ?  Why are there only three/two U.S. based car companies left instead of

> 150

> as at the beginning of the carmaking age ?

>

> "Monopoly" refers to the history of the car companies as well. GM is a

> winner, along with Ford, in the long term history of competition among

> U.S.based-owned car manufacturers. Most competitors have been eliminated.

> That is an illustration of monopoly growing out of competition as

> theorized

> by Marx. It is really not such an odd idea.

>

>

>

> "Imperialism cannot eliminate competition. 'In fact it is this combination

> of antagonistic principles, viz, competition and monopoly, that is the

> essence of imperialism, ...' "

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