Saturday, July 27, 2013

Competition

Probably the most poorly understood characteristic of competition is the fact that competition absolutely ensures that the strong get weaker and the weak get stronger.

The tendency to believe that the opposite happens is so strong that it is embedded in numerous aphorisms. Such aphorisms attest to an absence – not the presence of competition.

The tendency is strong because of the ease of thinking in absolute not relative terms.  Cognitive sloth then is unhelpful.

Take away competition and you go a long way toward ensuring that the weak can never get strong while the strong grow ever stronger.

Crony capitalism, crony unionism, crony regulation and crony politics is therefore always fundamentally focussed on removing or lessening competition – that is why it is harmful.

No comments:

Post a Comment