Earlier quoted context omitted.
But doesn't that either disprove capitalism as an realistic working system or make an argument that the state have an obligation to protect the market by destroying large corporations before they become dominant. A lot of the traditional critiques of capitalism have been that it will inevitable degrade back into mercantilism if the capitalist are not challenged by an democratic state and functional trade unions, but…
There are a couple of ways to look at it: 1. If another player(s) are able to start and freely operate as a competitor then talented engineers will have more options for employment and each entity will have to compete on both price AND quality in order to win business. This requires continued investments. 2. If the original player is able to use regulatory frameworks, lobbying and other tactics to enforce a monopoly,…
The problem with the just more competition argument is that it never actually works once a market reach a broken state it never self correct as too many people is going to be affected for that to be allowed to happen, which is exactly how mercantilism keeps creeping back, as the nation state behind it falls into the trap that protecting whats working is preferable to allowing the chaos of creative destruction to take down an entire sector of the nations economy.