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Archeologists of 21st century discourse would have fun with this comment thread. Most of the comments come in the category of "reacting to the headline, didn't read the article." Others, like this one, come in the category of "I knew that already! Why are you telling me again?" Because the article is not about you, that's why. Most essays on business, politics and life traffic in old truths expressed in new ways or applied to new circumstances. It would be a strange world indeed if every essay written for publication contained absolute newness. For one thing, about 99 percent of "new ideas" are either a) wrong or b) hype without substance (see Gary Hart, 1984 campaign).

If you've read books that say what Thiel is saying here, good on you! We're proud of you. But understand, you have avoided engaging with what he's saying here, which remains controversial despite the sagging bookshelves and MBA coursework out there that concurs with his argument.  Was it not Standard Oil that the Gov broke up ,Ma bell as well . You cannot do that "monopoly thing"and get away with it forever . this guy lives in his own Google world ? Google could shut down today and we would continue ,try that with Airline transportation and see the chaos . It is a bitter irony that Standard Oil's market share was declining even before the government anti-trust case. The world shifted from lamp oil to fuel oil as the major economic product, and Standard did not do nearly so well in the new world as the old. I consider Microsoft a modern day example of the same thing. Is the author really under the illusion that the kind of sophomoric nonsense in this piece is going to pass for innovative thought? His so-called monopolies are simply companies that have won over their competitive markets for some period of time - until new competitors, new markets and/or public policy push(ed) them aside. No, I didn't read it, because no such succinct and self-evident statement was made. If it had been made, it would have made all the other pseudo-intellectual verbiage unnecessary. The article tries to set up some absurd straw man argument about how economists think about competition, and then poses the referenced so-called monopolies as the antithesis of competition. No such thing is taking place; all the so-called monopolies are is temporarily successful competitors, in the marketplace, and in the context of public policy.

And if and when the marketplace or public policy change, they will have to adapt or die. That's what history shows with such temporary monopolies as Standard Oil or AT&T. I too don't understand the acrimony to Mr. Thiel comments. There's always 'someone' above the crowd 'running' the show. Apple is a key example of stepping up to the plate and hitting a homerun. I'd love to be involved with the next Apple. The acrimony is derived from a) people who didn't actually read the article, but wrongly think they know what it says from the headline; b) people who are somehow disappointed that Thiel is saying something that is not entirely new. But where in this article does he announce, "I'm going to tell you a brand-new idea you've never heard before?" It's argument, not invention. He is arguing against what he perceives is a broad-based misunderstanding of what makes our economic system work. This misunderstanding does manage to influence policy despite the fact that the ideas Thiel is endorsing are not hidden, are often discussed in business schools and in business books, and are foundational to the fortunes of many of today's business heroes. The message isn't getting through, so Thiel is trying again, admirably.

 

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