David Tepper Quotes

Many economists now openly praise monopolies as a more enlightened form of capitalism. Robert Atkinson and Michael Lind wrote a book titled Big Is Beautiful. They write, “In the abstract universe of Econ 101, monopolies and oligopolies are always bad because they distort prices… . In the real world, things are not so simple.” And to enlighten us, they continue, “Academic economics includes a well-developed literature about imperfect markets. But it is reserved for advanced students,” and these lessons are unavailable to the poor, benighted souls who don't have PhDs.15 It is ironic that the champions of monopolies are essentially aligning themselves with neo-Marxist economists who think that in capitalism the big inevitably eat the small. As the eminent Polish economist Michał Kalecki wrote, “Monopoly appears to be deeply rooted in the nature of the capitalist system: free competition, as an assumption, may be useful in the first stage of certain investigations, but as a description of the normal stage of capitalist economy it is merely a myth.”16 Kalecki would have felt at home in Omaha and Silicon Valley. Buffett and Thiel's views on competition capture the contradictions of capitalism. Thiel's idea that innovation comes only from large monopolies ignores his own personal history at PayPal. He was David creating a startup from nothing and competing against financial Goliaths.