Superficially looked at, all capitalists who do not compete with each other in the same marketplace should be friends,
working together to advance their common interests. In detail, however it isn't always true.
1. The first oil crisis, in 1973. The first response of the powers that be, both in the US and Canada, was to gang up against the oil industry, with price controls. That stupid move was dropped eventually but it does show the attitude of the wolf pack when their joint interests are affected by one wolf.
2. The monopoly AT&T. It was attacked and broken into pieces by the pack, all of whom pay phone bills. Maybe it was for the best, I'm not sure, but it did tear down Bell Labs, arguably the greatest research center in the world then.
3. When Gorbachev was in power and the cold war was at last vanishing, the defense capitalists demanded still greater expenditure on arms. They were overruled by the pack and such expenditures decreased steadily for a decade, rather than being increased. A majority of the wolves did not profit from arms spending, it was part of their tax bill only.
4. The pack is making growling noises at the drug industry. It turns out that medicines are often far cheaper than surgery etc. and just as effective. This pushes pharmaceutical prices to the forefront of the medical expenses. The latter are often paid for by company plans so the pack is visibly getting angry. Never mind that the fine profits are plowed back into R & D.
5. A practical application for the present. I suppose almost all of us, like me, own oil stocks. In tune with the above, in a great crisis, such as we expect to benefit such stocks as ES and Peyto, there may be a special "temporary" tax imposed on oil/gas profits. The pack may very well demand that all share in the pain. So I limit my oil/gas holdings to one third of the share portfolio, for diversification. Anybody disagree with all this? |
