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PersianPaladin

Vince Cable Says Capitalism Kills Competition

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I'm not sure that that's quite what he said, PP...Surely, it's 'unrestrained capitalism' that stifles competition?? Which is, in my opinion, why we are only now paying the price for Thatcher's and Blair's obsessions with de-regulation...In which case, I agree with Mr Cable.

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I'm not sure that that's quite what he said, PP...Surely, it's 'unrestrained capitalism' that stifles competition?? Which is, in my opinion, why we are only now paying the price for Thatcher's and Blair's obsessions with de-regulation...In which case, I agree with Mr Cable.

Yes got to agree Pete.

I like Vince he`s bright guy and i think he`s really saying that Bad Capitilsm has given the word a bad name,such as Greedy Bankers taking High Risks and Asset Strippers etc.

After all it`s the Bad Capitalists that got us into this mess.

Good Investment in Companys ie,Research,Machinery,IT,Marketing and indeed Training good people is what he and all of us want and need now.

The Banks now need to release some money to these companys for them to grow.

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Erm, why's this big news - of course capitalism kills competition, that's one of the main points of succesful capitalism - eliminate the competition !!! If true capitalism is allowed to develop unfetered we end up in a situation where a couple of huge companies dominate to such an extent that effective competition is eliminated - and in some parts of the economy that is already happening, (supermarkets, banks, food manufacturers, computing, cars, oil etc etc).

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Erm, why's this big news - of course capitalism kills competition, that's one of the main points of succesful capitalism - eliminate the competition !!! If true capitalism is allowed to develop unfetered we end up in a situation where a couple of huge companies dominate to such an extent that effective competition is eliminated - and in some parts of the economy that is already happening, (supermarkets, banks, food manufacturers, computing, cars, oil etc etc).

Like the U.S?!

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I always think of capitalism as one of those things that is positive in moderation, but harmful when taken to extremes. We see that problem with our public services- I can imagine private companies, assisted by government regulation, working alright, and probably more efficiently than government-run companies in many cases, but full privatisation has tended to result in a minimum of competition and thus "minimum service for maximum profit".

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I don't think capitalism necessarily kills competition although it can do so without the right checks and balances. What it is however is a giant pyramid scheme, that sells its self on the idea that we can all be top of the heap or at least get a fair way up. This of course is patent nonsense, simple because for capitalism to work it must have a wide base of proles trapped at the bottom doing the donkey work.

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I don't think the aim of capitalism is to kill competition- on the contrary, one of the main supporting arguments for it is that people can choose between competing companies, using their money to make according decisions, and if they don't like one company's products, they can go to another company- this helps to keep prices down, and product quality and efficiency high. The flaw is that when individual companies get big and powerful, they often try to stifle competition using tactics like buying out smaller companies, abusing intellectual property laws, and threatening competitors with costly lawsuits.

There are sometimes limits to how far companies can go with this, e.g. Microsoft found that, when releasing Windows Vista, it proved so unpopular that it ended up having to fight stiff competition from, of all products, Windows XP(!!), so they were compelled into making Windows 7 a lot better. But, for example, with public transport, operators can run minimum services for maximum profit, and there isn't enough competition among public transport operators to stop them (there is competition with the private car, but the way around that is to support deterrents to car use, thus stifling said competition). Many people complain about water companies and, (controversially), the banks, doing the "minimum service for maximum profit" thing, and again, there isn't enough competition to stop them.

Those are among the main reasons why I generally preach a "regulated market economy" approach, as opposed to outright free market capitalism or, for that matter, socialism.

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I don't think the aim of capitalism is to kill competition- on the contrary, one of the main supporting arguments for it is that people can choose between competing companies, using their money to make according decisions, and if they don't like one company's products, they can go to another company- this helps to keep prices down, and product quality and efficiency high. The flaw is that when individual companies get big and powerful, they often try to stifle competition using tactics like buying out smaller companies, abusing intellectual property laws, and threatening competitors with costly lawsuits.

There are sometimes limits to how far companies can go with this, e.g. Microsoft found that, when releasing Windows Vista, it proved so unpopular that it ended up having to fight stiff competition from, of all products, Windows XP(!!), so they were compelled into making Windows 7 a lot better. But, for example, with public transport, operators can run minimum services for maximum profit, and there isn't enough competition among public transport operators to stop them (there is competition with the private car, but the way around that is to support deterrents to car use, thus stifling said competition). Many people complain about water companies and, (controversially), the banks, doing the "minimum service for maximum profit" thing, and again, there isn't enough competition to stop them.

Those are among the main reasons why I generally preach a "regulated market economy" approach, as opposed to outright free market capitalism or, for that matter, socialism.

Agreed, ultimately the aim of a business is to get as large a market share as possible (monopoly), however that is truly liberal capitalism, with regulated capitalism provided the company has no more than 40% of the market i see no problem.

FYI: If anybody actually wants Liberal capitalism, vote UKIP because they are the most capitalist political party in the UK when it comes to economic policy.

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