It’s true that the talk about competition plays a deceiving role in liberal propaganda. But the very real role it plays in capitalism is also analysed in great detail by Marx. The labor theory of value for example relies on it. Competition disciplines firms that cannot produce at or below the socially necessary labor time.
Individual corporations can be very ineffective from an objective point of view. Even most of them. But the effect of competitive advantage is still felt on average across an industry and over time. Individual firms and capitalists don’t have to be rational for this effect to work. Hypothetically, if everyone were equally ineffective and irrational, an increase in productivity/the power to exploit would still create a competitive advantage.
You can argue about things that limit the extend to which competition effects certain aspects of life within capitalism at a certain point in time and space. That’s perfectly good dialectics. There are always opposite forces at play. And today, there exist many monopolies, that have reduced the effect of competition.
But, why do you think corporations do everything to acquire a monopoly position? It’s to avoid competition.
Even in late-stage capitalism, where real competition has in large part been eliminated by monopolies and oligopolies, it’s still the drive to avoid renewed competition, that determines the politics of these mega corporations.
While capitalism has a certain tendency towards concentration of wealth, it can hardly abolish itself. That requires full social control and abolition of markets. Capitalism has its counter-tendencies as well—crises, wars, innovation, planned obsolescence—which maintain the competition and profit rate necessary for continuation.
It’s true that the talk about competition plays a deceiving role in liberal propaganda. But the very real role it plays in capitalism is also analysed in great detail by Marx. The labor theory of value for example relies on it. Competition disciplines firms that cannot produce at or below the socially necessary labor time.
Individual corporations can be very ineffective from an objective point of view. Even most of them. But the effect of competitive advantage is still felt on average across an industry and over time. Individual firms and capitalists don’t have to be rational for this effect to work. Hypothetically, if everyone were equally ineffective and irrational, an increase in productivity/the power to exploit would still create a competitive advantage.
You can argue about things that limit the extend to which competition effects certain aspects of life within capitalism at a certain point in time and space. That’s perfectly good dialectics. There are always opposite forces at play. And today, there exist many monopolies, that have reduced the effect of competition.
But, why do you think corporations do everything to acquire a monopoly position? It’s to avoid competition. Even in late-stage capitalism, where real competition has in large part been eliminated by monopolies and oligopolies, it’s still the drive to avoid renewed competition, that determines the politics of these mega corporations.
While capitalism has a certain tendency towards concentration of wealth, it can hardly abolish itself. That requires full social control and abolition of markets. Capitalism has its counter-tendencies as well—crises, wars, innovation, planned obsolescence—which maintain the competition and profit rate necessary for continuation.