In business, money is either an important thing or it is everything. Monopolists can afford to think about things other than making money; non-monopolists can’t. In perfect competition, a business is so focused on today’s margins that it can’t possibly plan for a long-term future. Only one thing can allow a business to transcend the daily brute struggle for survival: monopoly profits.

In business, money is either an important thing or it is everything. Monopolists can afford to think about things other than making money; non-monopolists can’t.

Monopolists can afford to think about things other than making money; non-monopolists can’t.

monopoly, like every other system of injustice, carries in itself its own punishment.

In the real world outside economic theory, every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.

The mischief springs from the power which the monied interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges which they have succeeded in obtaining...and unless you become more watchful in your states and check this spirit of monopoly and thirst for exclusive privileges you will in the end find that the most important powers of government have been given or bartered away….

Exchange is truly voluntary only when nearly equivalent alternatives exist. Monopoly implies the absence of alternatives and thereby inhibits effective freedom of exchange.

Money is never a prize; it’s a commodity, a means for getting things done. Money simply transfers economic value from place to place so that people are able to work together.

To an economist, every monopoly looks the same, whether it deviously eliminates rivals, secures a license from the state, or innovates its way to the top. In this book, we’re not interested in illegal bullies or government favorites: by “monopoly,” we mean the kind of company that’s so good at what it does that no other firm can offer a close substitute. Google is a good example of a company that went from 0 to 1: it hasn’t competed in search since the early 2000s, when it definitively distanced itself from Microsoft and Yahoo!

It should be noted, moreover, that monopoly is frequently the product of factors other than the lower costs of greater size. It is attained through collusive agreement and promoted by public policies. When these agreements are invalidated and when these policies are reversed, competitive conditions can be restored.

In the real world outside economic theory, every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business. Tolstoy opens Anna Karenina by observing: “All happy families are alike; each unhappy family is unhappy in its own way.” Business is the opposite. All happy companies are different: each one earns a monopoly by solving a unique problem. All failed companies are the same: they failed to escape competition.

Why don’t we pass a law that says when you borrow money to buy somebody else and cannibalize him, the interest payments on those loans are not deductible? That would get the excesses out of the system pretty fast. Right now, if you want to buy up a competitor, generally you can’t. That would violate the antitrust laws. But if you want to buy a company that does something else entirely, that’s okay. Where’s the sense in that?

Shall I turn up the light for you?

No, give me deeper darkness. Money is not made in the light.

Protection against this general monopoly is as difficult as protection against pollution. People will face a danger that threatens their own self-interest but not one that threatens society as a whole. Many more people are against cars than are against driving them. They are against cars because they pollute and because they monopolize traffic. They drive cars
because they consider the pollution created by one car insignificant, and because they do not feel personally deprived of freedom when they drive. It is also difficult to be protected against monopoly when a society is already littered with roads, schools, or hospitals, when independent action has been paralyzed for so long that the ability for it seems to have atrophied, and when simple alternatives seem beyond the reach of the imagination. Monopoly is hard to get 4d of when it has frozen not
only the shape of the physical world but also the range of behavior and of imagination. Radical monopoly is generally discovered only when it is too late.