¶ … Monopoly of Opportunity
The concept of capitalism is often associated with concepts of free competition and opportunity and equal opportunity, where there is the ability of any firm to compete, and those with an entrepreneurial spirit may rise to the top of business and/or politics. In a recent article published by The Atlantic, Liu argues that the rather than providing opportunities equally, the system of capitalism seen in the U.S. constrains and exacerbates the existing economic, and therefore, social strata. The basic argument is that the rich are getting richer while the poor are getting poorer, effectivity creating an opportunity monopoly (Liu 1). The issue is not only associated with economic power but the way this is then impacting on and providing social power, including political power, as well as commercial power (Liu 1). By examining this article, and the underlying arguments, it is possible to appreciate the way in which ideas and concepts may different from the rhetoric when implemented in reality, and is present within the political environment as seen in the campaigns of both Trump and Saunders (Liu 1).
The concept of capitalism and the free market has its' basis in the idea of laissez faire, proposed by Adam Smith as the optimal approach to the market, where there was minimal state interference with the markets. The idea is that market forces will influence the markets to act in an efficient manner; so that adjustments would be made by suppliers in response to demand. Indeed, when looking at early America, Alexis de Tocqueville for capitalism in America is one which did not suffer from the same...
Effectively, although there was capitalism, he argued that the process had not resulted in crass individualism, seen with market capitalism in other areas. In Book II, Chapter 28, entitled Why among the Americans All Honest Callings Are Considered Honorable he stated "Among a democratic people, where there is no hereditary wealth, every man works to earn a living.... Labor is held in honor; the prejudice is not against but in its favour." Liu implies that this approach towards capitalism was seen in the United States for a period of time, referring to it as a "Tocquevillian ecology." However, it is argued that this model of capitalism is no longer present as power has become more concentrated.
The reason for this concentration is laid firmly at the door of capitalism, the way in which those who make money in the markets may pertain to prefer free competition, but in reality would be biased towards a monopoly if it were in their favour. Effectively, capitalists would be in favour of free competition if they were the competition rather than a dominant player. This creates a difficult scenario as companies seek to gain a dominant position. In the past anti-trust legislation has been effectively utilised to prevent organisations going to fast or too powerful, especially if it is by a process of acquisition or merger. However, in the modern society, the problem associated with disruptive technology has been its…
