by John Tamny
The American Institute for Economic Research
Entrepreneurs open up shop with dreams of profoundly changing how us consumers do things. Yes, monopoly profits are their goal. Thank goodness they’re the goal. They’re trying to win our business by virtue of making our lives so much better that we cease patronizing their competitors.
Really, what’s the point of going into business unless it’s to achieve market dominance? How obnoxious for a wannabe entrepreneur to hog precious capital if the goal is mediocrity. How is that helping consumers? Think about it.
Hard as this will be for the overly sensitive to accept, monopoly profits are a triumph. For consumers. Think about that for a second. Or maybe more. Monopoly profits signal that a previously unmet market need was met brilliantly, or a whole new need was fulfilled that existing businesses never knew existed.