For me, the highlight of our COSORES class discussion today lies on the concept of “imperfect competition”. If I’m not mistaken, (economics majors please correct me!), the assumption of capitalism and economics is that the invisible hand of the market will enable justice and fairness due to perfect competition.
Now I know what Yunus was talking about when he said that capitalism has failed. The invisible hand theory of Adam Smith seemingly failed to regulate powerful corporations capable of selfish monopoly and oligopoly. Moreover, there are times that government, though discouraged by free-market extremists, failed to regulate these predatory businesses from being abusive.
Failure through monopoly. Failure through oligopoly. Enabled by bad politics.