Market Economy v. Monopoly Economy

April 25, 2022

Market Economy


Monopoly Economy

Padmini Arhant

Prior to discussion on market economy and monopoly economy, it is important to shed light on creation v. acquisition. There is no comparison between creation and acquisition. In simple translation both terms are self-explanatory. 

Creation involves ingenuity, authenticity and original concept. Acquisition on the other hand is acquiring the created product for refurbishment and renovation with or without any appreciative value. 

In the so-called capitalism, the corporate takeovers, mergers and acquisitions transitioned from competitive market economy into monopolistic trade slighting anti-trust laws has drastically changed the definition and relevance of free and fair competition, the highlight of market economy. 

The economy increasingly in the hands of few selective billionaires wiping competitiveness and entrepreneurial niche across the spectrum is deceptively heralded as free market economy.

The trend contrarily affecting end-consumers with monopolistic trade practice and corporate policy hurting average consumers in pricing, quality and general benefits cannot be under estimated at any given time. From administration to marketing and management, the rules are set up and designed for exclusive corporate gains at the helm. 

As a result, the deviation from profit sharing trickling down to the bottom in work force increasing. consumer affordability to top tier shareholders is the norm. The average household income in these settings are either below marginal level or negative considering inflation and consumer price index ratio. 

Income inequality combined with inflation in the competition deprived monopolistic economy is carcinogenic for capitalist market economy.

Acquisitions and mergers masquerade inherent problems and deficiencies in major corporate undertaking with over valued stock of primary venture facilitating cash liquidity. Besides, distracted and disproportionate focus with too many different sectors in monopolistic control yield lack luster i.e. under performing outcome. 

The competition thwarted from economy with few billions to spare in hostile buyout deals is neither healthy nor viable in economic, ethical and innovative sense.

Not to mention, the corporate influence in politics and governance via direct campaign financing and lobbying for fiduciary interests leaving voters mere rubber stamp depicted as political mandate. The end game distort democratic system to entirely benefit the bidders and investors with no contentment or containment in the exclusive fortune inheritance. 

The competitive eclectic market economy providing options and flexibility in ultimate consumer oriented domain is unfortunately replaced with privileged monopolistic elite dominance – the axis in widening the gap between haves and have-nots misrepresented as efficient economic force. 

Again efficiency is anybody’s guess in selective individual growth or collective decline in economy and politics validated by monetary endowments.

Padmini Arhant 

Author & Presenter 


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