It is highly likely that you have frequently encountered the question of oligarchic growth and capital accumulation. It may also have arisen the question of whether this problem could be solved with decentralization and deregulation of the market. Of course, we immediately note that no one can offer a miraculous and magical solution to all of humanity’s problems. But let’s still look at how a free market and genuine competition can ease – if not completely solve – this long-standing disease of the economy.
The essence of oligarchy is simple – capital attracts capital. Money begets money, as they say. The richer you become, the easier it becomes to get even richer. Eventually, all large business begins to resemble a closed club where entry for an ordinary person is forbidden. Many may now find this clear – it’s necessary to strictly regulate the activities of the wealthy and take away part of their funds. But if you dig deeper, state regulations often help them more. They not only do not fight against oligarchy but also create favorable conditions for its flourishing. Why? Because large companies have the resources to hire an army of lawyers, accountants, and lobbyists who skillfully circumvent all barriers. Meanwhile, small entrepreneurs drown in bureaucratic jungles.
So why can deregulation help? Imagine: a market is a vast ocean. State regulations are artificial obstacles, reefs and islands around which it’s convenient to build personal kingdoms. If they were removed, the vast ocean would become much harder to divide into cozy “corners.” Free competition is like a storm that constantly breaks up any monopolies and prevents them from consolidating. To compete – means to live, to stand still – to drown. Remember how the internet destroyed traditional monopolies: taxi services, media, retail. New players emerged – Uber, YouTube, Amazon – and turned everything upside down. Yes, now they are new giants, but they appeared precisely because old regulations did not keep pace with technology.
Decentralization is another tool for protection against oligarchy, a new level. This is not just the cancellation of rules, but the transfer of control over resources and assets from a group of “chosen” people to the hands of many market participants. Recall cryptocurrencies and blockchain technologies. Their main idea: to replace centralized control with transparent rules that cannot be changed for someone specific. As a result, a system is built in which no participant can gain an advantage simply by virtue of their position or connections in government. Decentralization destroys the very ground for oligarchy. It’s impossible to build an empire on control over something that doesn’t belong to anyone.
But this is not a perfect pill – a free market and decentralization are not an absolute cure for greed and dishonesty. Some people will continue to try to create cartels, conspiracies, and fraudulent schemes. But without state patronage, without bureaucratic “quiet harbors,” it will be much harder for them.
Let’s wrap it up: yes, deregulation and decentralization aren’t perfect. But they definitely deprive the oligarchy of its main trump card – state support. They don’t just treat symptoms; they eliminate the very source of the disease. A free market is a continuous battle of ideas, products, and talent, where no one can rest on their laurels. Of course, the decision is yours – what to choose. In any case, it’s more interesting to live in a world where everyone has a chance to win, not just those sitting closer to the state trough.
