Does and how would too much business competition hurt the economy is this why not eve

[tradeunionsupporter]

Does and how would too much business competition hurt the economy is this why not every person in the world could own a business like Bill Gates ?

[iskrabronstein]

It depends on the scale of competition you are talking about.

In a restricted market, or a commodity sector of a larger market, competition drives down prices by enforcing the adoption of the most profitable modes of production and distribution, and by the consumption of smaller firms that cannot adopt such new means by their larger competitors. So, effectively, competition and capital centralization increase efficiency within a market up to a point - but after this point, the increased productive capacity and commodity flow in the market lowers profit margins: the firms, because of their profit oriented model, cannot accommodate a drop in demand and are forced to liquidate capital.

On an international level this process also occurs, but it is considerably more complex due to the interconnected nature of the global economy and the sheer volume of commodity flow.

After a certain point, capital centralization within a market leads to a monopolistic or semi-monopolistic set of economic conditions, where one or several large firms control production and set prices to maximize short-term profits.

Obviously this is neither good for the economy or, more importantly, the people.