Why we should embrace competition

#59

Dear Friends of Democracy, 

Competition limits power. It is therefore the prerequisite for the economy and democracy to be able to grow and prosper.

A comparison.

In economics, the concentration of power means the formation of monopolies. When one company rules the market, prices are high, wages are low, and product and service quality is poor. Only one side benefits from such a situation: the owners of the monopolist by excessively high corporate profits.

It's the same with democracy. There, the concentration of power means that one person or group holds permanent political power. Large parts of the political work are then spent on personal enrichment and securing power in the long term by all means and at the expense of the people. The consequences such a power concentration has for the population can currently be studied in Russia, for example.

But how can we avoid monopolies in both politics and the economy?

In a democracy, power limitation is achieved in two ways: by distributing power across different areas (judges, representatives, government, federation, states, etc.) and by limiting power over time and legitimizing it in elections by the people.

In a market economy, the limitation of power is also achieved in two ways: by letting customers (and not companies) decide which products and services they want to buy and consume, and through competition law that prevents concentrations of power, if necessary, by breaking up corporates.

The upshot: It's the competition that creates freedom. The freedom to lead self-determined lives for each individual. By voting for the politics they favour, going into politics themselves, choosing from a wide variety of products and services, working for a company of their choice or starting a company themselves. 

We should embrace competition – both in politics and in the economy. 

✊,

Johannes Eber