Capitalism and competition are opposites
Capitalism and competition are opposites
- Capitalism is based on the accumulation of capital.
- In a state of perfect competition, all profits are competed away.
- This means that perfect competition prevents the accumulation of capital.
- Therefore, to build a valuable business that can accumulate capital, one must avoid building an undifferentiated commodity business and instead aim for a monopoly.
- Monopoly vs Perfect Competition