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The book Zero to One has pretty questionable economics.

I'm paraphrasing here, it's been a long time, but his thesis is that in a competitive situation life of a company is nasty, brutish and short. And that might be true, but that doesn't mean that life for customers or shareholders or workers is anything like that.

Part of why companies have it so hard in harsh competition is that they have to pay workers well in order to attract them, and they have to offer customers real value for money (if they want to keep getting their money), and companies also have to give decent returns to shareholders.



The 19th century phrase used in public to justify building monopolistic “trusts” was avoiding “ruinous competition”, the nation would be better off with a few big monopolies


And I'm saying that the competition is 'ruinous' for the companies involved, yes. But it's great for workers, customers and shareholders.


Oh, absolutely. Financial elites in the US only like Adam Smith when it suites them.


I have no idea what you mean by "questionable economics" here. You seem to be saying that it seems true, but doesn't conform to your values.


The economics are questionable in a moral sense - monopolies are widely considered to be good for the monopoly's shareholders and bad for everyone else.


No, it's questionable in that competition might be ruinous for the company, but it's great for workers, customers, shareholders and innovation.


No. I'm saying that he's wrong. Competition is great for innovation, workers, customers and shareholders.


The core reason people hate/distrust/discredit economics is because it lays out a lot of solid yet uncomfortable or unfortunate points. People just really really don't want to know that the economic world is just as trying and punishing as the real world.


Huh? Economics as a discipline is great. Orthodox economics is exactly what I'm drawing on with my comment.




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