And now, on Open University . . .
This is how Capitalism is supposed to work:

Mr Smith has a shop, selling a certain product. Mr Jones opens a shop in direct competition to Mr Smith, selling the same product. Some of Mr Smith's customers go to Mr Jones, because his product is cheaper. But some stay with Mr Smith because his product, although more expensive, is of a higher quality. Thusly do Mr Smith and Mr Jones make a good living, the people have a diverse choice of products and life is good and harmonious.

This is how Capitalism really works:

Mr Smith wants to open to shop but can't afford to. He applies for a small business loan, and is granted one on the understanding that if his business declines the bank can sieze it. His friend agrees to front him the rest of the money in return for a 50% stake in the business.

Mr Jones opens a shop in direct competition. Some of Mr Smith's customers go to Mr Jones because his product is cheaper. Mr Smith thinks he can tough it out because his product is better, but under pressure from his shareholders he reduces his manufacturing costs to compete with Mr Jones. This means he has to move his manufacturing base overseas and lots of people lose their jobs. But it's ok because pretty soon people go back to Mr Smith attracted by his low prices.

However, Mr Jones is backed by a global conglomerate who can afford to run on very low margins and he further reduces his prices beyond the point at which Mr Smith can compete. Mr Smith is forced to lay-off his workforce so he can remain in business. His friend and the bank insist that because of Mr Smith's mis-management of the company he is not giving them a good enough return on their investment and they buy out Mr Smith's share of the business at a substantial loss to him and attempt to re-establish their market position by using slave labour in Indonesia to further drop prices.

But by this point it doesn't matter as, due to high media saturation, Mr Jones's shop has become synonimous in the public's mind with the product in question and Mr Smith goes out of business. His remaining assets are sold and split between his creditors.

Mr Jones becomes the richest man in England and, 6 months later, Mr Smith takes his own life in a dingy bedsit.

Hiiiii-thang-yow.
(MrC. Having the most boring username on b3ta since 2004, Thu 22 Jan 2009, 16:13, 1 reply)

But
When Mr Smith went out of business, Gordon Brown bailed him out with taxpayer's money because he was essential to the economy. So he was alright.
(Son of Sam-i-am We're all as mad as hatters here, Thu 22 Jan 2009, 16:24, closed)