But though a Trust with a really strong monopoly, and rid of all
effective competition, will be able to impose exorbitant and oppressive
prices on consumers, it must be observed that it is not necessarily to
its interest to do so. Every rise of price implies a fall off in
quantity sold; and it may therefore pay a Trust better to sell a large
quantity at a moderate profit than a smaller quantity at an enormous
profit. The exercise of the power possessed by the owners of a monopoly
depends upon the proportionate effect a rise of price will have upon the
sale. This again depends upon the nature and uses of the commodity in
which the Trust deals. In proportion as an article belongs to the
"necessaries" of life, a rise of price will have a small effect on the
purchase of it, as compared with the effect of a similar rise of price
on articles which belong to the "comforts" or "luxuries" of life, or
which may be readily replaced by some cheaper substitute. Thus it will
appear that the power of a Trust or monopoly of capital is liable to be
detrimental to the public interest--1st. In proportion as there is a
want of effective existing competition, and a difficulty of potential
competition. 2nd. In proportion as the commodity dealt in by the Trust
belongs to the necessaries of life.
Sec. 5. Steps in the Organization of labour.--The movements of labour show
an order closely correspondent with those of capital. As the units of
capital seek relief from the strain and waste of competition by uniting
into masses, and as the fiercer competition of these masses force them
into ever larger and closer aggregates, until they are enabled to obtain
partial or total relief from the competitive strife, so is it with
labour.
Pages:
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257