Discussion on the Rticle End the Opportunity Monopoly

¶ … 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 difficulties seen in Europe, arguing that the common man was able to benefit from a culture where hard work and money making with the dominant effort, rather than the aristocratic ethic seen the other side of the Atlantic.

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 ability to provide a few firms, and therefore a limited number of people, increased market power without constraint. For example, one can look at the Internet search engine, Google, which now dominates web searches.

This dominant position was not gained through the acquisition of other web search engines, but through his disruptive technology giving it a strong market position. One may argue the same with many other dominant firms, such as Microsoft with the Windows operating system. When a firm is able to gain such a dominant position, and then leveraging, they can become entrenched making it difficult for any true competition to exist. The dominant position, which may then be further leveraged and expanded upon becomes a self-perpetuating cycle creative concentration of power.

While there may be arguments and statements from those involved regarding the benefits of free competition, one only has to look at the Microsoft anti-trust case and the voracity with which the company fought and defended its position, to an appreciate benefits the company themselves associated with a high level of market power. This criticism of capitalism is not new; it was seen in the ideas of the legal activist Brandis who served on the Supreme Court between 1916 and 1939 (Liu 1).

He noted that public policy should be utilised as a way of ensuring there could be competition, arguing that this should be a mainstay of public policy (Liu 1). However, it is notable that over the last few decades, has been an increased level of neoliberalism, with the concept of laissez-faire have been embraced more robustly, especially during periods of economic difficulty where austerity programs corporate social cup. These have been utilised effectively to justify reduced government influence, by reducing public spending.

The problem within the political and social arena is the way in which market power amalgamates with the political voice and social mobility (Liu 1). Gaining power, whether at a local, regional, or national level requires money and influence, which are often associated. Liu gives the example of parent teacher associations, and the way.