Тег: Deregulation

Can a free market rid us of oligarchs?

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.

Волюнтарист, Битарх

Who benefits from regulations and what threat they may lead to

Voluntarist, Bitarch

Who is always the first to demand the introduction of new taxes? And who demands the introduction of new laws regarding the regulation of the economy and the market? Etatists will say that ordinary citizens are primarily interested in this for the sake of protecting their interests, ensuring security, and providing social benefits. But such an answer would be foolish, because the correct answer is large corporations, which are literally “in bed” with the state.

Why did Jeff Bezos—founder of Amazon, a company that writes off its profits as expenses to avoid paying taxes—support the increase of corporate taxes in the USA? To any sane person, it will be obvious that this is necessary to eliminate competitors in the market. But that is an old story; there is a more current example—well-known corporations and billionaires, such as Elon Musk and Microsoft, are actively calling for the regulation and limitation of the development of Artificial Intelligence. All of this, of course, they justify by the alleged need to ensure safety, since AI is so far a technology that is not fully understood, including in terms of risks. But such words sound like a fabricated excuse; moreover, why would major market players limit a technology upon which they can make money? Obviously, the point is to prevent private developments in the field of AI from entering the market; many small companies simply will not be able to afford the regulations, whereas large corporations will easily handle them. It is especially worth noting that those calling for the regulation of this field are themselves extremely active in its development.

The drive toward market monopolization is clear, as are the results of this process. Due to the lack of competition, everyone will only become poorer, and technological progress will be stunted. But the problem is not only this; there is a far more terrifying scenario. If AI technology truly carries some danger, then it would be extremely foolish to try to limit it, especially in developed Western societies where law-abiding citizens, who do not seek to harm anyone, will indeed follow the regulations. However, those who wish to use AI to cause harm will not follow the regulations. This applies to government authorities and their various structures. And it especially applies to those structures that are not under the control of Western jurisdictions at all. Some hackers from North Korea, already famous for hacking and stealing funds from crypto exchanges, persecuting people, and attempting to breach the defense networks of other countries, spit on Western bans; they will actively develop and use AI to cause harm to others. And military structures everywhere will certainly use AI, and even if the West bans its own military from doing so (and even that is a doubtful scenario, as the military usually has a completely free hand in such matters), jurisdictions hostile to the West will engage in it. In the end, only the civilian sector and the development of AI tools that could be used to counter AI threats will suffer from the bans and regulations.

The ability of large corporations and monopolists linked to the state to promote favorable regulations through it not only harms everyone economically, but can also jeopardize the very security for which all of this is allegedly being done. And will anyone still justify the very existence of stationary bandits and their ability to impose bans on everyone after this?