Seven Basic Conditions for Perfect Competition and a Complete System of Markets

     1. MOBILE FACTORS OF PRODUCTION WITH EQUAL ACCESS: The factors of production (land, labor, and capital) are perfectly mobile in the long run (and mobile despite barriers to trade), and equal access to them is enjoyed.

     2. SUFFICIENT FIRMS, AND MANY BUYERS AND SELLERS: There are no increasing returns to (economies of) scale (i.e., there are enough firms in each industry); a polyopoly-polyopsony exists (i.e., there are many buyers and many sellers); and there is no market power (or power to purchase and determine price), such that each participant is a price taker and no participant influences the price of the product it buys or sells.

     3. INTERCONNECTED MARKETS, AND HOMOGENOUS AND FUNGIBLE PRODUCTS: Any agent can trade any good for any other – directly or indirectly – with any other agent. Goods and services are perfectly homogenous substitutes for one another, their qualities and characteristics not varying between different producers and suppliers.

     4. PERFECT INFORMATION, RATIONAL BUYERS, AND PROFIT MAXIMIZATION: All consumers and producers are assumed to have perfect knowledge of products' production methods, quality, price, and utility; buyers are assumed to be capable of making rational purchases based on information given; and firms are assumed to sell where marginal costs meet marginal revenue (in order to maximize profit).

     5. NO FRICTION, NOR BARRIERS TO ENTRY AND EXIT: Transaction within markets, and entry into and exit from markets, all occur without any barriers or fees of any kind. No friction exists; the complete set of possible bets on future states-of-the-world can be constructed with existing assets (not speculative or leveraged assets) without friction.

     6. INSTANTANEOUS PRICE ADJUSTMENT: The adjustment of supply and demand to one another, and the calculation of price, are instantaneous, rather than slowed, delayed, or inhibited.

     7. PROPERTY RIGHTS, AND NO EXTERNALITIES: Property rights (including buyers' rights, and concerning what is to be sold) are well-defined. No externalities, which effect third parties, occur (whether positive or negative, intentional or unintentional).

Anarcho-Communists vs. Anarcho-Capitalists: Views on Property

Inspired by a comment by James Weeks II.

Monopoly and Property Rights

 Written in December 2010

Originally published 12-30-2010

Say you have an idea, an invention, or a way to improve a product. You want the exclusive right to get paid for your idea and secure your intellectual private property. So you go to the local, government-run patent office to do so.

Now nobody can compete with you unless they change their idea until it's different enough by government standards. Then you have a virtual monopoly. Monopoly is government protection of industry. So libertarianism and state capitalism are practically the same thing, especially when it comes to economic issues and the protection of property.

And all patents are registered at the federal level, so it's a centralized state capitalism, i.e., fascism, which easily sways towards totalitarian state socialism as soon as the state comes to favor building up its bureaucracies and creating government jobs when it thinks it can survive without cementing its business ties. So state capitalism and state socialism are the same thing.

So libertarianism and state socialism, though traditionally perceived as opposite, are really more similar than anyone could imagine.

And, obviously, anarcho-socialism cannot exist in any real way, because you can't take commercial or propertarian liberty away from the individual without having some form of public or socialized governmental organization with which to do so. So anarcho-socialism and state socialism are the same for all intents and purposes.

The public chooses at detriment to property owners, and property owners continue to possess and own at detriment to the remainder of the public.

Public-possessed means of production, private-owned means of production. What's the difference? In any remotely statist system, all private citizens are members of the public, and all public entities are operated by government agents for private profit.

I saw someone on TV talking about North Korea, saying that as soon as a country comes to embrace capitalism, democracy is never far behind. But late-night host Craig Ferguson says that capitalism and democracy need each other to balance out, because one is evil and the other is good, like the Olsen twins.

But does democracy develop in order to protect capitalism, or rather, in response and in opposition to it?

This country is built on the idea espoused by Franklin, Jefferson, and Rousseau - that private property rights are secured by public consent.

     So now that we've realized that both socialism and capitalism are bullshit and basically the same thing, where do we go from here?

For more entries on theory of government, please visit:

http://www.aquarianagrarian.blogspot.com/2010/10/aristotle-and-rousseau-on-natural.html

http://www.aquarianagrarian.blogspot.com/2010/10/thrasymachus-support-for-justice-being.html

http://www.aquarianagrarian.blogspot.com/2011/01/what-is-social-libertarianism.html

http://www.aquarianagrarian.blogspot.com/2010/12/on-konkin-schulman-bastiat-and-agorism.html

http://www.aquarianagrarian.blogspot.com/2011/04/materialism-stirner-vs-marx.html

http://www.aquarianagrarian.blogspot.com/2011/04/feudalism-and-class-war.html

http://www.aquarianagrarian.blogspot.com/2011/08/population-economics.html

http://www.aquarianagrarian.blogspot.com/2012/02/on-scott-walker-and-government-secrecy.html

http://www.aquarianagrarian.blogspot.com/2012/03/defense-policy.html

http://www.aquarianagrarian.blogspot.com/2012/03/political-compound.html

http://www.aquarianagrarian.blogspot.com/2012/10/two-competing-class-theories.html

http://www.aquarianagrarian.blogspot.com/2012/11/on-market-anarchism.html

http://www.aquarianagrarian.blogspot.com/2013/02/agorism-and-mutualism-summaries-and.html

http://www.aquarianagrarian.blogspot.com/2013/03/market-panarchy-without-adjectives.html

http://www.aquarianagrarian.blogspot.com/2013/03/market-anarchism-economists-vs.html

http://www.aquarianagrarian.blogspot.com/2013/08/anarchist-kindergarten-open-letter-to.html

http://www.aquarianagrarian.blogspot.com/2013/10/map-of-contiguous-united-states-in.html

http://www.aquarianagrarian.blogspot.com/2013/12/nonapartism-in-social-market-economy.html

http://www.aquarianagrarian.blogspot.com/2014/01/twenty-five-reasons-why-political.html

http://www.aquarianagrarian.blogspot.com/2014/01/statism-to-anarchy-staircase-model.html

http://www.aquarianagrarian.blogspot.com/2014/02/political-theory-flow-chart.html

http://www.aquarianagrarian.blogspot.com/2014/03/illustration-of-lange-model.html

http://www.aquarianagrarian.blogspot.com/2014/03/how-partisans-in-us-federal-government.html

http://www.aquarianagrarian.blogspot.com/2014/04/the-philosophy-of-taxation-and.html

http://www.aquarianagrarian.blogspot.com/2014/04/conservatives-for-georgism-and-social.html

http://www.aquarianagrarian.blogspot.com/2014/04/viewing-legislation-through-economic.html

http://www.aquarianagrarian.blogspot.com/2014/04/why-i-am-not-liberal.html

http://www.aquarianagrarian.blogspot.com/2014/04/military-industrial-socialism-and.html

http://www.aquarianagrarian.blogspot.com/2014/04/general-philosophy-on-government-and.html

http://www.aquarianagrarian.blogspot.com/2014/04/on-social-corporatism-and-tripartism.html

http://www.aquarianagrarian.blogspot.com/2014/04/what-is-political-radicalism.html

http://www.aquarianagrarian.blogspot.com/2014/04/questions-about-ayn-rand.html

http://www.aquarianagrarian.blogspot.com/2014/04/using-profit-incentive-to-promote.html

http://www.aquarianagrarian.blogspot.com/2014/04/thoughts-on-statism.html

http://www.aquarianagrarian.blogspot.com/2014/04/alliance-against-tripartism.html

http://www.aquarianagrarian.blogspot.com/2014/04/john-locke-roderick-long-and-voluntary.html

http://www.aquarianagrarian.blogspot.com/2014/04/summary-of-my-political-views.html

http://www.aquarianagrarian.blogspot.com/2014/04/economic-policy-for-2012-us-house.html

http://www.aquarianagrarian.blogspot.com/2014/04/social-policies-for-2012-us-house.html

http://www.aquarianagrarian.blogspot.com/2014/05/response-to-campaign-for-liberty.html

http://www.aquarianagrarian.blogspot.com/2014/05/agorist-protection-agencies-and.html

http://www.aquarianagrarian.blogspot.com/2014/05/the-proper-role-of-government.html

http://www.aquarianagrarian.blogspot.com/2014/05/the-general-welfare-clause.html