Classical economics proposed the law of declining profits. In a totally free market with plenty of competition and low barriers to entry, firms will lower prices, lowering profits until they barely make enough to survive. Naturally, US firms do everything possible to avoid this, lobbying for regulatory barriers to entry, buying competitors, making monopolies and oligopolies. The Chinese have apparently figured this out, as this tweet discloses:
The US economic model is based on massive corporations establishing monopolies through mergers and acquisitions and then charging monopoly rents to maximize profits, benefiting shareholders at the expense of consumers.
— Ben Norton (@BenjaminNorton) October 22, 2025
China's model forces companies to fiercely compete, and the… https://t.co/tGAWdrnedP pic.twitter.com/T77Te8kHzc
...which leads to a comment about the current business model of tech:
A note about the relationship between coercion and the tireless pursuit of scale and efficiency by tech platforms.
— Lee Hepner (@LeeHepner) October 21, 2025
Coercion isn’t a side effect of tech platforms. It’s the business model.https://t.co/mrmuUOH4rU pic.twitter.com/tabkXBx73W
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