How are monopolies formed?

We live in a system of rewards and punishments...there is nothing any of us can do about it.
John sought rewards by initially entering the market. The system in his country allowed him to seek the rewards of building his shoe business.

As is true with all "mature industries" the largest are strongest relative to concentrations of capital. They have the ability to capture the regulatory and political systems using this capital. The reason they capture the regulators and the political system? They get rewarded. They could spend billions improving their business and seek rewards in that fashion, but, it is more efficient to buy the regulatory system in order to "manage" their market and assure predictable future profits.

The pharmaceutical companies have captured the drug regulatory system because they have the capital to do so and it is an efficient destination for their capital investment. They, sir, get rewarded for doing this.

Toyota, Ford, GM and Stellantis are attempting to manage the public's adoption of electric cars. It is expensive to build new factories and abandon established ones. They are managing this "expense" in a myriad of ways including their lobbying power in the government. You can buy a politician for some cash, a battery factory requires taking on $2B to $4B in debt that the corporation must service...but wait...bills were passed that provided federal loan guarantees for these battery factories.

The Chinese EV mfrs want to sell their cars in the US and large tariffs are being prepared to assure US consumers can't buy them. The comedy here is that the CCCP in China have been pumping free money into the Chinese EV industry for years. This money was created through bond issuance by the Chinese central bank seeking the rewards gained from having a growing economic engine.

If you propose a system that does not provide rewards to the participants? Your system will be unpopular. The old Soviet Union had strong control over all social narratives thus, citizens didn't think waiting three hours for some chicken at a shop and sharing an apartment with three families was that bad. Markets tend to be more efficient for the population, but have their downsides. My friend in the UK told me about the NHS.

US average ambulance response time 9 minutes
UK average ambulance response time 38 minutes

US average passenger train time variable up to 15 minutes 80% of the time (Amtrak is owned by the federal gov't)
German passenger trains are on time 89% of the time

Amtrak conductors are not rewarded with a bonus for being on time.
Many EU passenger train systems reward conductors with a bonus for being on time.

Cherry picking examples here as I don't have anything to sell except for this....any system has a good side and a bad side. Any attempt to eliminate "problems" will create new ones. This can be discovered with study on your part.

In 1972 a brand new Chevrolet Vega got 30MPG on the highway.
In 2022 a brand new Chevrolet Malibu got 32MPG on the highway....50 years later there are no real efficiency gains as oil and automotive industries captured the regulatory apparatus long long ago.

Lenin told the soldiers in the trenches "We will end the war."
He told the factory workers "we will all own the factories comrade"
He told the farmers "you will own your farm."

Obama promised "change"
Trump promised to make America great again

Hope is a powerful tonic and politicians know it.

Great video

And then the government breaks him apart and half of his business is bought by Vanguard

Funny how school doesnt mention any of this

Wow, people mention law and that's it? Trash! These criminals should have been banned years ago! Slick cons! When are people going to use thier brains! 2023 People's health before that garbage science! Abunch of dangerous kid adults whinning about one another putting people's life's within dangerous places because of thier poor marking's! Ever notice how when polotics of an honest nature are searched on any platform that they use avashion tactics because some networks cloak thier greed with numbers yet individualy some are not happy! When honesty is fully applied and problems resolved before they repeat, the world gets a chance to change! So why hasn't this started?

It's a dog-eat-dog world...

TIK sent me.

THIS WHAT U just explained is exactly what is going to happen in every of the WEF mandated 15 minutes cities!!

thanks for the tutorial

the 2nd part is valid but why is the first bad? trying to protect your own producers and workers from competition from foreign producers and workers, every country should take care of itself first, no? why would that be bad?

Its more about race when it comes to this people will think Jeff Bezos is a smart businessman wheras people will say Jay Z would be called a criminal

I'm homeschooling my daughter, she's 11, almost 12. I'm showing her these videos in some of her economic class. I think it's important for individuals to understand these things in order to make informed decisions. They don't teach these things in public schools.

Actually this kind of monopoly happens in socialist countries, where the government have the maximum power these things happens.

I would argue that even the monopoly's employees would likely have been better off in the event of a free market "forcing" them out of their jobs. With a lower overall cost of shoes, the market has greater effective purchasing power, thus presenting further opportunity for other businesses to produce goods. Those other businesses would then need more employees - a demand satisfied by the freshly laid off former employees of the shoe factory and shop.

With the experience gained working for someone else, when a barrier to entry in a particular sector is still negligible, there's very little stopping the former employees from starting their own factory, and perhaps a retail chain, to supply shoes of comparable quality and at competitive prices to the market.

So really, the only ones who gain from a monopoly are the ones who own it. Everyone else loses. Just like a pyramid scheme or MLM.

And that's how Al Bundy's biggest dream looks like. Thanks for the film.

There’s an interesting anecdote in the third book of the Hitchhikers Guide trilogy about shoe sales overwhelming a planetary economy

Isn't this more of a union? I thought a monopoly was more of a control of all aspects of production.

Almost always government protectionism.

TIK sent me

Mafia-poly!

Some things missing. One important one, is that big businesses can arrange tax breaks to “bring jobs” into local, state, and national areas. They can do this separately for headquarters, production facilities, and distribution facilities. Additionally, they can lobby for overpriced government contracts to fill government needs in various areas. Another important monopoly feature is pursuing exclusivity. This is approached by obtaining ownership of infrastructure(railways) or purchasing the ability to have merch sold in supermarkets/stores. Another is to buy out competition through purchasing businesses and/or intellectual property rights(patents). The last but not least method, invoking temporary drops in prices resulting in a profit deficit in order to seize market shares from competition who don’t have the funds to accept profit deficits.

Basically put up high barriers to entry.

So it's always thanks to the state then..

Plot twist


After killing off his competitors John won. John is Jeff Bezos

When are you going to upload a video on free market healthcare?

Cool! This is like PragerU. Back to Thomas Sowell's "Basic Economics".

Should be titled “How to build an artificial monopoly?”
A true monopoly is one of three things:
A vertical combination: the company owns a share of the means of production and the means of distribution of a good or service. The Supreme Court ruled this to be an unfair business practice in the case of movie production companies which also owned the cinemas back in the day.
A horizontal combination: the company owns either the production or the distribution of a good or service and has little to no significant competition.
A combination combination: the company owns both the means of production and the means of distribution of a good or service and has little to no significant competition in either.

When the government tries to regulate monopolies, it often results in trading true organic monopolies for forced artificial monopolies.

This explains why the USA does not have the the same high speed trains found in Japan and China

The government not only creates monopolies with legislative protections...but IS a monopoly itself. Monopolies are bad for consumers. Yet people still support the government, which is a (violently funded) monopoly. No wonder our schools, roads, money supply, police, courts, and jails are totally fucking rotten. At least I won't go to jail for not buying a product from a market monopoly.

Unfortunately the USA is allowing monopolies thru legislation. Look at Bezos. He bought the Washington Post to further his monopoly (never a peep about it in fake journalism) and promising good press for his legislative slaves, errr employees, errr Patriots to his cause! Yes comrade Bezos uses the usps to deliver for him at low cost. Amazon is wal mart on steroids, or crack, meth? Meanwhile he uses the profits to build a railroad into space. Now for you historians how well did the railroad barons make out in the 19th century USA. See the future?

I finally get it. Now, what to do with this information mwahaha

The common good lobbying method is so toxic. God i cant stand arrogant ceo's and weak politicians.

Workers lose as well. No competition means, no incentive to keep experienced workers. No incentive to pay better. Higher prices lower volume, which leads to..firing DUH! if you're not moving as much volume you don't need all those experienced expensive workers. you fire them and keep less experienced people. Its not like you customers can go elsewhere. Even if your quality drops significantly, you wont lose customers.

so..quality drops. competition? what competition? You buy shares in you associates business, making money from their shales as well. At some point you consolidate. You and your associates form a corporation, pick an employ as the CEO and you retire. You are not responsible for the running of the business anymore, just as long as your dividends don't fall..you don't care what happens.

Congratulations! You crated a soulless exploitative mechanism that, puts out substandard products , pays less than market value for work at inhumane conditions, while its in bed with the government. Your business ,is part of the "public sector"now. Unofficially of course but, all those rules and regulations that ensure your monopoly.. you do what the government wants or ..they can go away.


Congats ! You're in politics now. Politicians call the tune, you dance like a good little puppet.
I know, doesn't seem that way to you, does it? Lets try an experiment. You support something the government doesn't like. say..fund a politician that talks about justice and free markets. Send a couple of hundred thousand their way. See what happens, puppet.

Poor little puppet! Suddenly.. your political friends go away, the press is all in your private life..your stock takes a dive. Sorry puppet i feel for you but, it was your choice.
Freedom, includes the freedom to fuck up millions of lives for decades. But, you never had freedom puppet, just some liberties.
Was it all worth it?

What laws did standard oil use to create their monopoly? As far as i know they controlled all the trains to choke out all other competition.

The problem these days is that consumers aren't just 'not heard', they often agree with this. The idea of protecting consumers from their own free choice has become ingrained. Wear seat belts, wear masks, licenses for businesses, etc. Socialist consumers advocate against their own choice, for they believe the consumer should not be allowed to choose, for their own greater good of course.

All this presumes that somehow in a democracy where you can buy off politicians this can be prevented. The fact is that monopolies are a natural consquence of capitalism in a democracy. Only extremely vigorous political action can counter this which almost never occurs. Sorry to disapoint the Libertarians.

Free market exists. In your dreams.

Top notched👍🏻

No 1 gainer is the government who gets lobbied and fed with taxes

Sounds like Amazon

3 seconds in and you already have to make a utopian argument to support your claims? Businesses cannot acquire significant market shares without abusing and/or exploiting someone. The system of bribes (lobbying) marries already big capitalists to the government and is what will be the death of capitalism. No amalgamation of the upper class has ever in the history of mankind voluntarily given up their power and so confrontation will come to change society from the base. A society where the system can allow single people to be more powerful than hundreds of millions of others is doomed to fail and the checks and balances on future systems will have to put a cap to how much comparative wealth anyone can get or how much power any political organ can allocate and distribute for its purposes.

The best channel

It's very important for libertarians to ensure that everything stays in the realm of the theoretical. Standard Oil, Amazon, or any other real world monopoly wasn't created because Amazon got exclusive license to sell goods online, or because Standard Oil had a tariff levied against oil imports. They were created by the most simple market force: the better your services are, the bigger you get. The bigger you get, the harder it is for others to compete with you, and the easier it is for you to buy up smaller competitors. It's not hard to compete with Amazon because of some government licensing program- anyone can sell stuff online- it's difficult to compete because Amazon is huge.

Monopolies are the invisible hand at work.... hahaha. Capitalism is deeply flawed within its roots, just like Communism.

Well, monopolies wouldn't exist without the driving force of maximizing your profits. Because behind every monopoly there is a capitalist who is just maximizing its profits in the most efficient way for him (not for society). And that my friends is capitalism 101.

Nowadays you don't need a logical reason to pass new legislation, money solves more problems for you than reason.

why you don't discuss Standard oil monopoly. That one wasn't encouraged by the US government.