Damn Facts — Peter Radford

Another good one from Peter Radford.

Economists love letting us know that they know about the potential various errors that might devastate the core of what they believe, but they equally love sweeping such anomalies under the rug so as not to have to re-invent their discipline.…

But back to increasing returns.

It’s one of those topics that economists like to tuck away and discuss out of the glare of public gaze. It represents a considerable challenge to the foundation of contemporary economics. Economists love letting us know that they know about the potential various errors that might devastate the core of what they believe, but they equally love sweeping such anomalies under the rug so as not to have to re-invent their discipline.

And the big four tech companies being hauled before Congress today are each a pretty good example of the problem. More exactly, they are all good examples of the existence of increasing returns as a fact in the real world. Facts can be so annoying when you want to preserve your theory....

Increasing returns come from asymmetrical power, e.g., monopoly power.

BTW, a lot of American hegemony economically is about the US preserving and extending its monopoly power internationally and this is what domiantion through neo-imperialism and neocolonialism is largely absolute. The US government is just acting as an arm of American business and finance (industrial and financial capital) in this regard.

Russia, China, Germany, Iran, etc., realize this and are opposing it. The "special relatioship" means that the UK is cut in on the deal.

The Radford Free Press
Damn Facts
Peter Radford