2.Pure and Perfect Competition

In, Platonic Competition, Reisman has supplied a neat summary of why perfect competition is false.For more articles eviscerating the false theories of market competition – Pure and Perfect, go here on the Ludwig von Mises site. The point is obvious enough, next to Keynsian quackery, perfect competition is the assumption of the politicians, advisers, apparatchiks and bureaucrats. It is central to the risible Australian Competition and Consumer Commission.

Under Fels, the ACCC, as Brookesnews reported on, fined a small trucking firms, then newly formed, for establishing an ‘illegal’ cartel’.

Perfect Competition is the pin, now of  ‘trust-busting’.

P.C. is ground into every Australian undergraduate. In the core textbooks:

1. Eckert and Leftwich, assert it is a logical starting point.

2. Of, Begg Fischer Rudiger and Dornbusch, Begg abandoned it when it dawned on him the force of perfect competition, the breaking up of firms by coercion in the name of ensuring ‘perfect competition’.

That’s quite apart from the absurdities and contradictions pure and perfect competition entails, such as horizontal demand curves, when all demand curves slope down, even of the individual firm.

Next, no-one acts blindly, after all, the prices convey information. No firm, unless run by the suicidal, acts blind.

The upshot, under perfect comp. competition is defined as ‘concentration’, how many suppliers there are: many good, few bad. That this nonsense is lost on pollies and burueacrats and the ACCC is evident in the very fact, buy competitive or not, they mean ‘concentration’.

Now, I’ll resume this tomorrow, first thing, leaving the reader to the very good explanation by Reisman; he has rightly tagged perfect and pure comp. by the first pseudo-philosophical excuse for totalitarianism, Platonism, and for its gnostic epistemology.

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