Markets are efficient?

Walter Daum WGDCC at CUNYVM.CUNY.EDU
Thu Jul 13 10:04:37 MDT 1995


On Thu, 13 Jul 95 10:12:23 W. Europe Daylight Time--100 aniello margiotta said:

>>Matt D. wrote:
>>
>>  Something like 50% of new enterprises fold
>>> within their first year or two, right?  This is the "anarchy of capitalist
>>> production" is it not?
>>
>>The failure of small business to compete in most markets is not primarily
>>a result of poor decision-making or the "anarchy of capitalist
>>production", but is rather the result of the concentration and
>>centralization of capital.  That is, most new enterprises (especially small
>>enterprises) are not able to compete with larger firms with a higher
>>productivity of labor.
>>
>>Jerry
>
>Right, and it has, like consequence, profits increase exponentially for few
>condition the political choices of governments with their immense economical
>power.
>    Nello

Profits increase exponentially?  How does that square with the FRoP tendency
plus the evidence (Shaikh, etc.) that corporate profits are not doing well
these past two decades or so?

And on small business failures: my anecdotal impression is that small
businesses go under because of competition from other small businesses, not
from giant corporations. If they face the giants at all it's as suppliers,
customers, banks, etc., not product-line competitors. Is this impression
accurate?

Walter Daum


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