Discussion in 'Markets & Economies' started by bordsilver, Feb 16, 2014.
Snippets from Chapter 1 of L.V. Mises (1954) The Anticapitalistic Mentality. Available free here.
On the topic of capitalism, this looks like a worthy subscription:
Cool. I bought a hard copy of one of the issues at a conference a while ago but didn't realise that there was an on-line site as well.
Oh the irony...this work being distributed without a profit motive. :lol:
That's because intellectual property is a socialist construct (encouraged by tired business people who have gained from capitalism in the past to allow them to rest on their laurels and not have to deal with fresh innovation/competition).
Now I have to read 122 pages of Ludwig von Mises.
I will enjoy it!
@Trew, so spending the kids inheritance may be easier on your heirs after all.
Innovation (and particularly the financing of innovation) depends upon intellectual copyright. No-one will build a lab for a scientist if they know that discoveries made there will not allow them to profit from those discoveries. Lack of intellectual copyright kills innovation because it encourages laziness and copying instead of creativity.
Nothing about Corporations or derivatives? Of course, gambling is the latest skill required to play the former capitalistic game.
Join the big corporations, gamble all day, no jail time if you go too far..What a racket.
Capitalism is long gone, the Corporate world is now in play..Best of luck if you are a small businessman. Of course you can always point out an exception, a George Soros, a Bill Gates or an Andrew Forrest but the odds of taking on a Corporation in competition and getting a foot in the door are 10,000 to 1 or more.
Regards Errol 43
I agree Errol, what we have now is not capitalism.
Really? Then please explain why we have a thriving fashion, perfume, furniture, magic tricks, open source software, comedy, hairdressing, tattooing, automobile and food recipe industries which continually innovate and are continuously able to obtain billions in financing year after year even though they cannot obtain copyright for their structural or creative designs/recipes etc?
Or, if you wish, please explain why 65.8% of Australian businesses active in innovation did not employ any intellectual property methods at all with the vast majority of those that did not using any government IP law and instead simply resorting to confidentiality agreements and secrecy (21%) or Complexity of product design (5.8%)? (See ABS 8158.0 )
Remember also, a system of intellectual monopoly may well increase the amount of money that an innovator can make by selling their idea but it also raises the cost of producing that idea. The innovator must pay all the other monopolists more to use their ideas in creating his own. The system also creates a variety of other costs innovators must engage in costly patent searches to make sure they are not infringing existing patents and the substantial legal and court fees earned by lawyers are all part of the cost of operating a system of intellectual monopoly. Because of all these costs, a system of intellectual monopoly may well lead to less innovation than a competitive system.
The answer is simply that - as proven many times in many situations in the past and still today - in the absence of IP laws people will continue to innovate and create and, where necessary, find other ways of funding ideas. First mover advantage and complementary sales are simple examples while companies like Kllenex, Tupperware, Red Hat, Band Aid, Firefox, Tylenol, Bayer, Hershey have enjoyed long success by engaging in relentless innovation in design and by out-competing the competition. The competition is fierce. How do they deal with it? The model is always the same. Get there first. Stay on top through marketing. Count on brand loyalty. Innovate. Explain your superiority. Never rest on your laurels. Move forward and watch the competition carefully.
As I said, IP laws are encouraged by businesses tired of having to continually improve to protect their place in the market.
Bagging crony-capitalism is not really the point of this thread.
That makes perfect sense and is what would happen practically but it does not go with the theory that is written in one of boardsilver's book so therefore you are wrong (sarcasm)
Capitalism is an economic system in which trade, industry and the means of production are controlled by private owners with the goal of making profits in a market economy. Central characteristics of capitalism include capital accumulation, competitive markets and wage labor. In a capitalist economy, the parties to a transaction typically determine the prices at which assets, goods, and services are exchanged.
Corporate capitalism is a term used in social science and economics to describe a capitalist marketplace characterized by the dominance of hierarchical, bureaucratic corporations.
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