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The lie about 'competition' is best for us the consumer


Image result for line of high street shops

According to the prevailing dogma, markets work ‘properly’ when the interests of the consumer are maximised: real competition will ‘drive up quality’ and ‘drive down prices’. 

This is what we are told, look at all these shoe shops, sure that must means the shoes will be cheaper.

Competion is the champion of the consumer. Well, no, i am afraid not, 'competition means cheaper goods for us' is a truism which isn't true. 

Since in actual markets this is not what tends to happen – competition more often leads to near monopoly power for the largest producers, who can then fix the markets to their own benefit – the government, in the form of the regulator, is continually having to step in to make competition work properly.  

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