Competition?

Pure competition, one learns in Economics I, only occurs where there is a large number of producers. Some higher Commerce units teach techniques associated with mergers and takeovers. These have the obvious effect of reducing the number of producers in the economy, which reduces the amount of competition. Therefore Commerce studies at Victoria act against the competitive ideal.

The argument that the "free enterprise" system reduces the costs of goods and services to the consumer is never substantiated. The assumption is that a competitive system results in lower prices for everyone. Recently in Salient there was an interview in which a Business Administration lecturer said in effect, that the competitive system as it was operating in New Zealand acted against the best interests of the consumer, because business men engaged in price fixing practices which ultimately raised market prices. So the theory of competition does not relate to actual business practice and another justification for the capitalist system disappears.