20 July 2008

The Results of Political Oligopoly

There is nothing which I dread so much as a division of the republic into two great parties, each arranged under its leader, and concerting measures in opposition to each other. This, in my humble apprehension, is to be dreaded as the greatest political evil under our Constitution.
-- John Adams



Opinion from the Washington Times:

Congressional approval ratings are an all-time low. House Speaker Nancy Pelosi, a Democrat, has presided over an ineffectual term punctuated by the House's return to reason on FISA, its game of chicken over the Iraq war and other embarrassments.

Today's sour political climate is not solely anti-Republican. Amid soaring gas prices, plummeting home values and bank failures, this cycle also features a more general "throw the bums out" factor.

Why have House Republicans have failed to capitalize upon the failures of the majority's ineffectual leadership in such a climate?

Neither political party is working. We need more competition.

No system of resource allocation is more efficient than pure competition. Competition causes new products, services, and technologies. This gives consumers greater selection and better products. The greater selection typically causes lower prices for the products compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly).

Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. This causes oligopolistic markets to be at the highest risk for collusion.

Here's a post that approaches this problem from the left:

Consultants justify their fees by getting political candidates to do what they otherwise might not. In short, they guarantee in many cases that winning through manipulation is all that counts, for only then can they justify making their bucks.

The result is an increasingly stagnant political system, one apparently increasingly incapable of adapting to challenges.

Graph courtesy Center for Responsive Politics.

2 comments:

Anonymous said...

Anonymous says ... Third Party Missteps:
Nightmare Nightingale / Chelene Ward Nightingale , the so called 'ethics' candidate: wins her walk in California's American Independent Party June Primary just to be convicted of fraud. Originally 'red flagged' by elections officials she is bounced of the partisan General Election ticket.

West Coast Libertarian Christina Tobin, the 'unifying' elections reform crusader is tagged by rumors of not getting along with pentional anti Proposition 14 allies!

The Democans and the Republicrats must be laughing their Pacadyrms and Donkeys off! ------ Citizens For A Better Veterans Home, jcoffey9991911@yahoo.com

Anonymous said...

Anonymous says ... Third Party Missteps:
Nightmare Nightingale / Chelene Ward Nightingale , the so called 'ethics' candidate: wins her walk in California's American Independent Party June Primary just to be convicted of fraud. Originally 'red flagged' by elections officials she is bounced of the partisan General Election ticket.

West Coast Libertarian Christina Tobin, the 'unifying' elections reform crusader is tagged by rumors of not getting along with pentional anti Proposition 14 allies!

The Democans and the Republicrats must be laughing their Pacadyrms and Donkeys off! ------ Citizens For A Better Veterans Home, jcoffey9991911@yahoo.com