- Capitalism and Alternatives -

thank you for debating me.

Posted by: DonS ( USA ) on December 03, 1999 at 11:06:14:

In Reply to: The $100 Candy Bar Revisited posted by Barry Stoller on December 02, 1999 at 16:19:02:

: Market-share.

Don: It is not clear to me why a capitalist would be concearned with market-share if the market is sufficiently large. If my Evil Capitalist Candy Bar Company is running full blast making candy and selling it for $100 a pop, why do I want to increase my market-share?

Don: True, I could try to increase production. I could buy more machines, hire more downtrodden workers, use a bigger whip on my workers, etc. If I'm making such a profit, it stands to reason I will reinvest some of this profit (that which doesn't go into my yachts, planes, cars, pretty young females, overseas bank accounts, and golden parachutes) in the company, thereby increasing profits more. It also stands to reason that other capitalists will enter the field of selling $100 candy bars. At some point, the market will be saturated, and no one will be willing to pay $100 for a candy bar. Consumer demand will be satisfied. All the evil capitalists will have to drop prices because of this. Because consumer demand is finite.

: Exhibit A: Sam Walton.

Don: Who?

: Exhibit B: China (consider the current objections voiced by U.S. steel unions concerning 'dumping').

: There are exceptions, however. As I later said:


: When I speak of competition, I do not especially refer to the superannuated notion of price competition. I refer to competition of production process (which includes labor), advertising, and---especially---access to special privileges and subsidies maintained by the government.

: Due to the sporadic nature of my (several) debates with Dons, I think the exceptions I spoke of seemed to be contradictions...

Don: I did not consider them contradictions, but off of the subject.

: Some industries still face price competition (steel). Others do not (Microsoft comes to mind).

: The dialectic of capitalism is always in flux (as Marx and Engels noted in 1848).

: Nonetheless, MOST commodities sell at an AVERAGE profit. (Hence, the $1 candy bar---NOT the $100 candy bar.)

: Others, do not. Expatiation here.

: Thanks to Don for a good debate---which (unfortunately) I failed to answer carefully at the time...

Don: And I thank you for debating me.

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