Austrian Theory of the Trade Cycle

Wow, these are cool (star wars computer game) sound effects. I have the urge to applaud every time "the economy grows" or "people save more" ;)

This is an old post, but I wanted to contribute a couple of points towards your NFL example.

Remember the XFL? That was a riot. There was a Las Vegas team that hired strippers to work as cheerleaders.

The CFL has also experimented with expansion teams in the US with limited success.

The threat of competition is real, and in a very direct way.

The only way to gain a big market share is by beating the competition by offering products of higher quality at lower prices. And if you get greedy and start increasing prices you will lose your market share as quicly as you won it. This is explained in the video i sent you.

"There must be no alternatives to your product either in or outside of your market. The NFL has a virtual monopoly on Professional Football. "
Remember there is also the potential for competition. The reason the NFL doesnt raise prices and gives a bad service, its not only because there are substitute products but also the mere threat of new competition coming in.

I completely agree. JP Morgan and Rockefeller went through similar situations as new competition found new, better and cheaper ways to produce. It forces the older competitors to constantly improve and anticipate future demand, which is overall better for the market.

But regulation creates barriers to this process, favoring bigger older connected firms at the expense of newer better firms and also customer preference.

I never said anything bout regulation being a good thing though you might have missread my statement.

Oh no. I understood what you said. I just meant to show that in order to maintain that free market share, you have to continue to beat your competitors, like you said.

Morgan and Rockefeller got big, but they couldn't stay big because smaller newer and better competitors entered the market and started to destroy their market share.

I was adding regulation to show that old firms not willing to accept free market competition will as for regulation to restrict competition.

Sorry for the mix up

one of your best videos!

THANK YOU!
This is excellent. I'll keep it forever :)

Very good points, i appreciate it, it will help me refute better against those socialists and liberal minded fools (offensive, but true). Thanks.