One thing about most discussions of the free market is that they never mention location. It is enough that firms exist; it is presumed that if they offer a good product and a good price consumers will come to them. However, the business world treats this very differently. Great attention is paid to location (there’s even a show named after it) and business people are well aware that a couple of yards can make or break a business. Location changes the way we view competition, instead of focusing on whether or not there is a national monopoly, we should realise that almost all firms are to some extent monopolies in their area. Continue reading “The Importance Of Location”
One of the most glaring omissions from modern economics is the complete absence of any mention of power. Textbooks describe a world where everyone is equal and no one has power to influence others to benefit themselves. Norbert Haring and Niall Douglas make a huge contribution to correcting this omission by discussing the importance of power relations in economics and during the financial crash in their brilliant book, Economists And The Powerful. They show how power got removed from the economics discourse for ideological reasons, the power and influence of the financial industry, the corporate elite, how the economy is best described as monopolistic competition, how the money supply is controlled by banks, how the labour force is shaped by market power and how the government is manipulated by corporate interests for their own gain. It is a superb book that I highly recommend.