Hmm... The claim that Rockefeller didn't attempt to drive out competitors is specific to that case. Sure, producing below cost would do more harm to the monopoly, and less for the small competitors in the short-run, but what if the monopoly can drive out its competitors, if the laws allow? In the long-run, if all competitors are driven out, the company can revert to selling its products at whatever price it wishes. Of course, this isn't something that has empirical evidence to prove, because antitrust laws are in place right now. Like I said before, let's just imagine what will happen if there weren't any antitrust laws. It helps if we think little, like concession stands or cafeteria.
As for the hi-tech jobs moving out to India, I don't think there's anything wrong about it from an economic standpoint. Yeah, it's terrible to workers and my friends in the hi-tech industry, but as a proponent of free trade, it's ok from a macroeconomic standpoint. I went back to a famous article written by Stephen Krasner last night. Krasner argues that in order to maintain free trade, inevitably there is a trade off for more social instability, such as the moving of jobs from sector to sector. However, this would give less developed countries (i.e. India) the chance to greater economic development by integrating our technologies, which in turn allow us, as consumers, to benefit from lower prices. hurray! It's a win-win situation. However, the strength of the American economy would slip unless it can keep up its technological edge, Krasner argues. Without the strength of the American economy and its military might, America would also lose its hegemonic powers in the world of politics. According to Krasner's hegemonic theory, this would create a scenario in which free trade is difficult to maintain, because a powerful hegemon is key to leveraging other nation-states to keep its markets open. I hope that America can keep up its technological edge and hegemony; otherwise, our economy and our financial well-being could be adversely affected.
- Celine