"Manufacturing and commercial monopolies owe their origin not to a tendency imminent in a capitalist economy but to governmental interventionist policy directed against free trade and laissez faire"
- Ludwig von Mises
About this Quote
This quote by Ludwig von Mises recommends that manufacturing and business monopolies are not a natural outcome of a capitalist economy, but rather are triggered by government intervention in the type of protectionist policies. These policies are created to restrict free trade and laissez faire, which is the concept that the federal government must not interfere in the economy. By restricting competitors, these policies create monopolies that can control prices and limitation consumer choice. This quote suggests that federal government intervention is the cause of monopolies, not the capitalist economy itself. It is essential to keep in mind that while monopolies can be useful in some cases, they can likewise lead to greater costs and lowered consumer option. Therefore, it is very important for governments to be familiar with the possible repercussions of their interventionist policies.
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