Economics Dictionary of ArgumentsHome
| |||
|
| |||
| Competition: Competition is a rivalry or contest between individuals or groups striving for a common goal, often involving effort, skill, or resources._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
| Author | Concept | Summary/Quotes | Sources |
|---|---|---|---|
|
Karl Marx on Competition - Dictionary of Arguments
Rothbard II 418 Competion/Marx/Rothbard: (…) one may well ask, if the accumulation of capital necessarily slashes profits, why do capitalists, who are clearly motivated by a search for higher rather than Iower profits, insist on continuing to accumulate? Why do they persist in cutting their own throats? >Rate of Profit/Marx. Solution/Marx/Rothbard: One Marxian answer to this riddle is 'competition', and Leninists in particular like to explain the allegedly later development of 'monopoly capitalism' and of imperialism as attempts by capitalists to form cartels, or find investment outlets abroad, as attempts to stave off the dread consequences of competition.(1) Rothbard: But the mere citation of 'competition' is scarcely an adequate answer. It is true, for example, that a new discovery or a new industry will cause very high profits at the beginning, and that in the pursuit of these profits new, competing firms will eventually bid down the rate of profit in the industry. But, in the short run, at least, and before equilibrium arrives, these capitalists are still making high and above normal profits. But, in contrast, the Marxian businessman who accumulates capital, loses profits at each step of the way, and not simply in the long run. It is therefore diffcult to see why any one capitalist, at any step of the way, would ever be tempted to join in the accumulative parade. Solution/Marx: Marx's ultimate answer to this riddle is deceptively simple: capitalists accumulate, despite the immediate and future fall in their profits because, well, they have an irresistible, irrational urge, or 'instinct' to do so. Rothbard: This, of course, is no explanation at all; it abandons any genuine explanation under the cloak of a high-sounding but ultimately meaningless label such as 'drive' or 'instinct'. 1. The Leninist theory depends on the claim that both state monopoly capitalism and imperialism come later than competitive, non-imperialist capitalism, the latter condition having prevailed during Marx's life- time. But imperialism - tribes or nation-states conquering or aggressing against, and robbing, other tribes or nations - is as old as recorded history, and state monopoly capitalism at least as old as the mercantilist era._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Marx I Karl Marx Das Kapital, Kritik der politische Ökonomie Berlin 1957 Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
||
Authors A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Concepts A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
