
A Land of Monopolists: From Portable Toilets to Mixed Martial Arts - pseudolus
https://mattstoller.substack.com/p/a-land-of-monopolists-from-portable
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sharemywin
The key word/concept I got from this concentrated finance.

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mikhailfranco
Monopoly is clearly an important, natural and desirable objective for
capitalists, see Peter Thiel's _Competition is for Losers:_

[https://www.wsj.com/articles/peter-thiel-competition-is-
for-...](https://www.wsj.com/articles/peter-thiel-competition-is-for-
losers-1410535536)

Note that Thiel is describing the inevitable goal of capitalists, because in
the long run of perfect competition, all profits tend to zero. Technology and
innovation are certainly one way of ensuring that the _ceteris_ do not remain
_paribus._

However, Thiel is not recommending monopoly as a policy for society. Only the
most ardent libertarians argue for pure _laissez-faire_ anything-goes
capitalism that results in lazy extractive rent-seeking monopolies.

The best balance for society seems to be free markets, which are _as free as
possible, but no freer._

A free market needs rules against: monopoly and oligopoly; price gouging but
also dumping below cost; predatory acquisitions that concentrate markets;
monopsony in the supply chain and the labor force; collusion, corruption and
insider trading.

It also probably requires positive requirements for truth in advertising,
verifiable product standards, open data, published product specs (like food
contents), health & safety in the workplace, and protection of the commons, in
the form of environmental rules against dumping toxic waste and pollution of
air, water and soil.

Free markets also need low barriers to entry, which are in tension with some
of these protections. The guide should be _as free as possible_ to allow
competition. Many regulatory measures, such as professional licensing, put up
barriers to entry that enable rent-seeking behavior for those behind the
credentials & licensing walls. Obviously brain surgeons and nuclear power
plants need some regulation, but perhaps real estate agents or hairdressers do
not. The requirement for open data should make both brain surgeons and nuclear
power plants publish their track record.

There may also need to be long-term strategic regulation for the climate.
Again, it is best to leverage the power of free markets to achieve that goal.
Some form of carbon/methane hydrocarbon tax seems worthwhile, as it will
create incentives for new businesses and technologies. Also note that the free
market will take care of other effects naturally: we will see falls in
property prices for the eventually-to-be-inundated suburbs of Shanghai and
condos of Miami (hint - don't park in the basement :)

It is counter-productive to tax things that are desirable, like income and
employment, when what should be taxed are undesirable activities, like
greenhouse gas emissions. So tax carbon, maybe keep some of the vice taxes on
alcohol and drugs, but remove all income and payroll taxes. The Gulf states
tax oil production and do not have income taxes. Let us tax oil consumption
and also not have no income taxes.

I would go as far as to say, _only_ tax carbon if _all_ income taxes are
removed.

