8/13/2023 0 Comments Real world monopoly examples![]() ![]() And as companies refuse to die and monopolies refuse to improve, we struggle to generate even mild economic growth. Today, the creative destruction isn’t happening. Joseph Schumpeter called this “creative destruction,” which sounds harsh but it’s absolutely necessary for economic growth. It is a dynamic process with competitors constantly dropping out and new ones appearing. Normally, companies grow their profits by delivering better products at lower prices than their competitors. Eventually friction brings it to a halt… sometimes a fiery one. Take away competition and it all begins to grind together. ![]() We get more output from the same input, or the same output with less input. The machine works more efficiently when all the parts move freely. “Gumming up the economy” is a good way to describe it.Ĭompetition is an economic lubricant. Far larger than anyone - the American companies DowDuPont and Monsanto.Īs we have reported , some economists say this concentration of market power is gumming up the economy and is largely to blame for decades of flat wages and weak productivity growth. corn seed sales, up from 60% in 2000, and 75% of soy bean seed, a jump from about half, the Agriculture Department says. Similarly, just four companies control 85% of U.S.hogs slaughtered in 2015, 85% of the steer, and half the chickens, according to the Department of Agriculture. In agriculture, four companies control 66% of U.S.
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