Friday, July 13, 2012

Tugot: Market-Barriers and Wealth Distribution

"...innumerable statutes, dictated by the spirit of monopoly, the whole purpose of which were [sic] to discourage industry, to concentrate trade within the hands of few people by multiplying formalities and charges, by subjecting industry to apprenticeships and journeymanships of ten years in some trades which can be learned in ten days, by excluding those who were not sons of masters, or those born outside a certain class, and by prohibiting the employment of women in the manufacture of cloth." Tugot

Tugot's observation note the tendency for coercive-institutions to amass capital/"wealth" accumulation in fewer hands (by a variety of market-restrictions), than in more even-distributions.  Barriers to trade/exchange (licenses, regulations, certifications, inspections) all result in coercive-monopolistic rent-seeking.  Therefore, we would expect, under voluntary-market conditions, absent coercive-institutions, that these artificial/arbitrary barriers to market-entry as well a barriers/hindrances/inefficiencies to the conduct of business (those not imposed by the market itself, but by some arbitrary external source), would result in an increase in the tendency for increase in competition (more people entering the market to provide products/services), and this would increase the tendency for the market to be served by greater number of persons who do not have the economic-capacity to navigate the coercively-imposed market-barriers and would therefore result in a more even distribution of capital/"wealth"/human-needs-meeting/satisfaction.

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