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| Stating that the working classes are parasitic social groups living of others is a myth without foundation: they are big companies and fortunes and banks who have assaulted States and conquered the power that enables them to live rent rather than innovation and risk. |
One of the economic myths that most successfully have spread is always linking increased competition with the interests of companies and their defense with the practice of rights, while workers and their representatives, unions and leftist parties , they were blamed for wanting always to live at state expense and income generated by others.
It seems incredible that after so many years to see how they actually capitalist economies can say something, but the truth is that is said daily and with an extraordinary effect of conviction.
It seems to lie because the truth is that not only large companies do not want competition, which is the main engine of efficient markets, but they are usually the primary cause disappears. I do not think that could be found all over the planet one large company that claims and has no oriented department precisely to combat competition and, more specifically, to try to influence in any way for governments to legislate the way it is most convenient to them, granting privileges and market power. They could be counted by thousands legal norms, from the most general laws more specific guidelines, which have come directly from any of those departments without in parliament were able to change a comma in collective benefit. Who has had any legislative or management experience knows perfectly.
Collusion and agreements to eliminate competition are the rule precisely because this is the greatest enemy of the companies that are just looking to earn more and more money, because where there is more competition, prices are lower and do not enjoy benefits extraordinary. Therefore, takeovers, mergers, cartels, holdings ... different forms of concentration and centralization of capital have always been the leitmotif of capitalism and there is an economic sector consolidated where the prevailing logic is not that of fewer companies dominate the market. Market itself, but without competition and well protected by the rules that the state enact the dictates of big business or banking.
The great Adam Smith realized soon it and put it in words as wise as beautiful: "Rarely will be together those in the same profession or occupation, even on the occasion of fun or other extraordinary accident, which did not conclude their meetings and conversations in any combination or conspiracy against the common benefit, conviniéndose to raise the prices of their devices or goods ".
The competition is usually the hotbed of innovation, progress and profit, but the paradox is that its beneficial effect disappears in the same measure as the growing desire for profit prevails and destroys it . Companies and banks that want to be increasingly large and increasing relentlessly their performance figures know it's true what they put on the lips of Nobel economics John Nash in the movie A Beautiful Mind , "Competition always produces losers." Why they do not desire and struggle daily to end it.
However, as I said, the dominant narrative is that companies and rights that defend their interests seek to generalize competition in markets while workers just want to live of others.
Many data show that either the latter is true, and it is now or has been throughout history.
In my book Economy to not be fooled by economists I mention, for example, the results of various investigations by Anwar Shaikh and Ahmet Tonak that show the United States that those who "benefit" of the welfare state (that liberals considered the greatest of the sackings) contribute to financing it through taxes with higher amounts of which they represent the benefits they receive. And similar conclusions have been reached in other countries. As in Spain, where we know that cash transfers benefit the state more to higher income groups. Not to mention the direct or indirect state aid that has been receiving all the banks and big oligopolies or more simply, spending decisions taken by governments with no other way to provide business after business. What great company, bank, What great fortune exist as such in Spain without help from the state? Possibly than enough fingers to count them.
Stating that the working classes are parasitic social groups living of others is not just a myth without foundation but a contradiction in its own terms because it is physically impossible that you can create any kind of wealth without work and the fact is that owners work receive only a small part of the total value generated by their collaboration in producing all kinds.
Are large companies, banks and large fortunes generated in their environment who have assaulted States and conquered the power that enables them to live rent rather than innovation and risk, protected with rules and laws that they themselves write and appropriate the wealth of others, cleanly and sometimes corruptly more, as we are unfortunately seeing every day in our country.
That said, it can not be denied, however, that if the myth has spread to satiation is to some extent because much of the left and representation of the working classes have historically had an obvious confusion about the reality behind of capitalism. They have linked mistakenly to the market and have failed to appreciate that, although it seems a paradox, competition and efficiency in the generation of wealth are and must be perfectly compatible with solidarity with the collective well - being and even cooperation. They have too often believed that income and wealth are a kind of gift or progress and revolutionary is to believe that everything is free.
Third article in the series 'Unveiling lies, myths and half - truths economic'
Source: http://www.eldiario.es/zonacritica/teme-competencia-vive_6_640495979.html
It seems incredible that after so many years to see how they actually capitalist economies can say something, but the truth is that is said daily and with an extraordinary effect of conviction.
It seems to lie because the truth is that not only large companies do not want competition, which is the main engine of efficient markets, but they are usually the primary cause disappears. I do not think that could be found all over the planet one large company that claims and has no oriented department precisely to combat competition and, more specifically, to try to influence in any way for governments to legislate the way it is most convenient to them, granting privileges and market power. They could be counted by thousands legal norms, from the most general laws more specific guidelines, which have come directly from any of those departments without in parliament were able to change a comma in collective benefit. Who has had any legislative or management experience knows perfectly.
Collusion and agreements to eliminate competition are the rule precisely because this is the greatest enemy of the companies that are just looking to earn more and more money, because where there is more competition, prices are lower and do not enjoy benefits extraordinary. Therefore, takeovers, mergers, cartels, holdings ... different forms of concentration and centralization of capital have always been the leitmotif of capitalism and there is an economic sector consolidated where the prevailing logic is not that of fewer companies dominate the market. Market itself, but without competition and well protected by the rules that the state enact the dictates of big business or banking.
The great Adam Smith realized soon it and put it in words as wise as beautiful: "Rarely will be together those in the same profession or occupation, even on the occasion of fun or other extraordinary accident, which did not conclude their meetings and conversations in any combination or conspiracy against the common benefit, conviniéndose to raise the prices of their devices or goods ".
The competition is usually the hotbed of innovation, progress and profit, but the paradox is that its beneficial effect disappears in the same measure as the growing desire for profit prevails and destroys it . Companies and banks that want to be increasingly large and increasing relentlessly their performance figures know it's true what they put on the lips of Nobel economics John Nash in the movie A Beautiful Mind , "Competition always produces losers." Why they do not desire and struggle daily to end it.
However, as I said, the dominant narrative is that companies and rights that defend their interests seek to generalize competition in markets while workers just want to live of others.
Many data show that either the latter is true, and it is now or has been throughout history.
In my book Economy to not be fooled by economists I mention, for example, the results of various investigations by Anwar Shaikh and Ahmet Tonak that show the United States that those who "benefit" of the welfare state (that liberals considered the greatest of the sackings) contribute to financing it through taxes with higher amounts of which they represent the benefits they receive. And similar conclusions have been reached in other countries. As in Spain, where we know that cash transfers benefit the state more to higher income groups. Not to mention the direct or indirect state aid that has been receiving all the banks and big oligopolies or more simply, spending decisions taken by governments with no other way to provide business after business. What great company, bank, What great fortune exist as such in Spain without help from the state? Possibly than enough fingers to count them.
Stating that the working classes are parasitic social groups living of others is not just a myth without foundation but a contradiction in its own terms because it is physically impossible that you can create any kind of wealth without work and the fact is that owners work receive only a small part of the total value generated by their collaboration in producing all kinds.
Are large companies, banks and large fortunes generated in their environment who have assaulted States and conquered the power that enables them to live rent rather than innovation and risk, protected with rules and laws that they themselves write and appropriate the wealth of others, cleanly and sometimes corruptly more, as we are unfortunately seeing every day in our country.
That said, it can not be denied, however, that if the myth has spread to satiation is to some extent because much of the left and representation of the working classes have historically had an obvious confusion about the reality behind of capitalism. They have linked mistakenly to the market and have failed to appreciate that, although it seems a paradox, competition and efficiency in the generation of wealth are and must be perfectly compatible with solidarity with the collective well - being and even cooperation. They have too often believed that income and wealth are a kind of gift or progress and revolutionary is to believe that everything is free.
Third article in the series 'Unveiling lies, myths and half - truths economic'
Source: http://www.eldiario.es/zonacritica/teme-competencia-vive_6_640495979.html
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