Why Competition Is Good

milton friedman monopoly quote

This is something I think many of my well-meaning progressive friends (Republican and Democrat alike) fail to understand about the libertarian/small government mindset. Competition is good for all of us, and giving one entity power over anything, even when trying to be “fair,” typically ends in worse choices for the average person, not better.

That is why so many of us are concerned about health care, for example. It’s not that we do not want people to have health care – we do (or at least I do. I can’t speak for everyone who holds my beliefs.). Our fear is that the standard of health care for everyone will go down over time. With no incentive to improve quality, will our care improve over time? I don’t know the answer to that, but if typical human nature plus past experience is any indication, we may find that our health care system goes down the tubes.

And that’s just one example. Competition often makes everyone step up their game; the lack of it often ends in complacency.


P.S. > In case you want that full quote in text form –

“The great danger to the consumer is the monopoly — whether private or governmental. His most effective protection is free competition at home and free trade throughout the world. The consumer is protected from being exploited by one seller by the existence of another seller from whom he can buy and who is eager to sell to him. Alternative sources of supply protect the consumer far more effectively than all the Ralph Naders of the world.”

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