Comment by FranklinJabar
1 day ago
Typically in capitalism, if there is any profit, the race is towards zero profit. The alternative is a race to bankrupt all competitors at enormous cost in order to jack up prices and recoup the losses as a monopoly (or duopoly, or some other stable arrangement). I assume the latter is the goal, but that means burning through like 50%+ of american gdp growth just to be undercut by china.
Imo I would be extremely angry if I owned any spacex equity. At least nvidia might be selling to china in the short term... what's the upside for spacex?
> The alternative is a race to bankrupt all competitors at enormous cost in order to jack up prices and recoup the losses as a monopoly
I don't know of an instance of this happening successfully.
Walmart? It's certainly more successful in physical markets
See Amazon
4 replies →
taxi apps, delivery apps, social media apps—all of these require a market that's extremely expensive to build but is also extremely lucrative to exploit and difficult to unseat. You see this same model with big-box stores displacing local stores. The secret to making a lot of money under capitalism is to have a lot of money to begin with.
Taxis are a government created monopoly.
None of the big-box stores have created a monopoly.
Amazon unseated behemoth Walmart with a mere $300,000 startup capital.
Musk founded his empire with $28,000.
Amazon
See Walmart