Wednesday, November 12, 2025

The lack of competition can be dangerous. Even to national security.




The law of supply and demand plays a key role in capitalism. Capitalism guarantees competition. And competition guarantees quality. That’s how people justify capitalism. The main argument in those cases is that competition guarantees quality. But in some cases, we must ask. Is competition. Some kind of fata morgana? There is a possibility that a single person owns company clusters, and those clusters of companies look like. Technically separated, but acting under one command. It can form a monopoly that authorities cannot recognize. 

The problem with ultimate capitalism is that only people who have money can get an education. This happens. When the capitalistic ideology. Goes so far. That other than basic education is for a fee. This causes a situation. There are people who own companies starting to sit around the same tables. With people who should monitor those companies. This means higher education. Those educations are required. For the high-ranking governmental positions, as well as in the head of the multinational corporations. 

Accumulates in the same families. In the worst cases, legislative, executive, and financial and economic power accumulates in the hands of the same people. Politicians require financial support for their campaigns. They need marketing space and people who support them. So, if some financial leaders promise things like factories in the same political area, if some politicians are elected, that thing can guarantee votes. 


This means that people who have a lot of money and a lot of business. It can offer many things to people. When business life accumulates in the same hands. That means the competition can be lost. That can cause a similar effect to a socialist system. There was no competition. Made to products. Made in the Soviet Union. In capitalism. The same person can own multiple companies. There is a possibility that some production sectors can accumulate. In the hands of the same person. 

Those things called monopolies are often denied by governments. There are competition authorities whose mission is to deny monopolies. But it's possible to own multiple companies that are separate on paper. But nothing denies that the same person can own multiple, technically separated companies. Those ownerships can be done over a chain of companies. If these companies are listed in many countries. That can cover the monopoly. Another interesting thing is cases where makers of products. 

Only governments have access to buy make fusions. That means that. There will be a lack of competition. In that case. When the government buys some jet fighters. They need something where they can make a selection. In the worst case, there is only one offender. And in this case, there are no competitors. There are no dogfight simulation opponents. That should guarantee the quality of those products. There is a possibility that the same people who offer those products. 

These are the same people who accept those products. There is a possibility that people who own things. Like banks will own multiple companies through that bank. Another way. To make of this operation. It is simple. To establish an investment company. Those investment companies can buy stocks. And one version. It is to eliminate. A competitor is to buy the majority of the competitor’s stock. That means. The company can buy its competitor. Away from the market. This is one of the things. That has an effect on national security. Lack of competitors. Makes it hard to test systems. And there is a possibility. That some unqualified system passes the screen. If it will not be tested against its competitor. 



No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

The lack of competition can be dangerous. Even to national security.

The law of supply and demand plays a key role in capitalism. Capitalism guarantees competition. And competition guarantees quality. That’s h...