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Monopolies, Resources, and Theft
April 22, 2008

I am not too fond of monopolies - be they private or public. Even public corporations - if possible - should permit competition. In cases where there exists natural monopolies, then of course I prefer public over private ownership. Nathaniel Branden in "Capitalism: The Unknown Ideal" argues that there are no such thing as "natural" monopolies. "Nickel of Canada produces more than two-thirds of the world's nickel -355756122_3a040d4cfb_m.jpg yet it does not charge monopoly prices. It prices its product as though it had a great many competitors. Nickel (in the form of alloy and stainless steels) is competing with aluminum and a variety of other materials... when the price of bituminous coal rose... this was instrumental in bringing about a large-scale conversion to the use of oil and gas in many industries."

Though Branden made a good point, such industries often tap into something that I find difficult to lump together with other forms of private property: subterranean natural resources. Some of these resources are found under huge bodies of water. And despite Verna E. F. Harrison's statement in "Free Enterprise" that "A vast amount of today's wealth was created, not stolen by conquest or fraud", the capitalization of natural resources is one of the instances where I'll agree with Proudhon's "property is theft".

Filed in Economics , Environment
1 Comments



1 comments:

Cynthy said:

Yeah, Luis! Wow, I forgot how much your writing moves me... that sounds cheesy, but seriously. It gets me so angry and worked up that at some point I realize I’m thirsty for intellectual conversation and a brainstorm of concrete ideas...
I'm going to call you soon. I think I still have your number.

paz



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