CONCENTRATION AND CENTRALIZATION OF CAPITAL | bambinoides.com

CONCENTRATION AND CENTRALIZATION OF CAPITAL

 

 

For the capitalist individual, capital is money used to buy something only in order to sell it again to realize a financial profit. This is why there are no perfectly competitive markets. The growing size of firms and the consequent weakening of competition, is the perfect ecosystem for the growth of monopoly power. This phenomenon derives from the increas­ing concentration and centralization of capital power. Increasing concentration of capital occurs as individual capitalists accumulate more and more capital, thereby increasing the absolute amount of capital under their control. The size of the firm or economic unit of production is increased correspondingly, and the degree of competition in the market tends to be diminished.

Centralization occurs through a redistribution of already existing capital in a manner that places its ownership and control in fewer and fewer hands. Larger firms would be able to achieve economies of scale and thus produce at lower average costs than would smaller firms. Competition between the larger, lower-cost firms and the smaller firms would result in the growth of monopoly and the elimination of the smaller firms. More so when governments and politicians become instruments of high rollers capitalist. At times, high roller themselves take over governmental positions as majors, or governors or as presidents.

Fair, just, balanced economy growth is not possible under this scenario. The common good is not served.

 


 

 


Source: image –  WIKI | Google | 

 


The views expressed are not necessarily those of the publisher or bambinoides.com. Images accompanying posts are either owned by the author of said post or are in the public domain and included by the publisher of the blog bambinoides.com on its initiative.

Leave a comment

You must be Logged in to post comment.

WP-Backgrounds Lite by InoPlugs Web Design and Juwelier Schönmann 1010 Wien
Confrontando la información, - el pasado y el presente...
"Estudia el pasado si quieres pronosticar el futuro". (Confucio)