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Dav in Phoenix (CCAL30) (3194)

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Is Competition Necessary?

Posted to: Dav in Phoenix (CCAL30) (3194) by Dav in Phoenix (CCAL30) (3194), Mon, 30 Jul 2007 01:06:01 PDT
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I was thinking today about how we base our economy on competition.

We expect the farmers growing corn to be competing against one another. If they cooperated, then the price of corn would go up, because no one would be offering corn for a lower price. We expect the wheat farmers to be competing against the corn farmers too, keeping the price of grains low by always trying to make as much money as possible and steal market share from one another.

At the root of this is lack of trust, stemming from the human tendency to cut corners, our desire to retire early on passive income. Our tendency to steal, not just from our neighbors, but from our children and grandchildren.



By Dav in Phoenix (CCAL30) (3194), Mon, 30 Jul 2007 01:10:00 PDT
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The weird thing though is how we discourage cooperation, even though cooperation tends to make everyone richer.

When the oil companies cooperate with the car companies, then the gas stations are designed just right for cars, and the cars are designed just right for gasoline. This is a benefit. However, there is a cost in that together they suppress electric cars, whereas if they weren't cooperating electric cars probably would have won by now.


By Jan Benet~Love~Vincent (CCAL30) (2769), Thu, 09 Aug 2007 11:20:50 PDT
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So True!


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