Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: apoliticalone

“...the corporations that get critical mass....Or these mega....organizations need broken up....”

There is a dirty secret the government doesn’t want people to know regarding how monopolies come about: it’s the government’s fault in the first place!

As the most successful companies begin to dominate the competition within their industry, they benifit from economies of scale, but they also suffer from over extension. Many entrepreneurs whose companies experienced mega growth wish for the days when they had a single crew that they managed directly - the replication, delegation and scaling up required to span entire regions involves managerial skills totally unrelated to the skills that made them competitive in the first place.

The point is that in a truly competitive market, companies do NOT naturally grow until the largest one absorbs and monopolizes all others. Instead, they encounter new challenges as they grow, and continue to compete for market share.

So how do monopolies come about? The government. The largest companies can afford to lobby the government and finance political campaigns so as to pass advantageous legislation to protect them from competition. Every lobbyist and every bought and paid for politician who claims to be protecting the environment, protecting consumers, or protecting patients from unsafe drugs or medical quackery - what they are really doing is protecting the corporations they work for from competition.

These powerful lobbies bribe legislators to pass legislation that exempts them from regulation or taxation while hobbling the competition. In some cases they pass legislation that directly enforces a monopoly. But often, the protection from competition is counter intuitive - the powerful lobbies for big pharma for example seek MORE regulation and MORE taxation for their entire industry, even themselves - why? because they are large enough to survive compliance while their smaller competitors are not.

Without their government partner to enforce them, corporations could not easily achieve these monopolies.

It is useful to look at examples of monopolies throughout our history and question what part the government played - not in breaking them up - but in subsidizing them, protecting them from competition, enabling them in the first place.

This gigantic, bohemoth, oversized government of ours is totally corrupt - to find out who controls it - follow the K street money.


108 posted on 08/11/2018 9:25:12 AM PDT by enumerated
[ Post Reply | Private Reply | To 106 | View Replies ]


To: enumerated

Well said. Monopolistic corporation are more likely to rest on their laurels, innovate less, be less responsive to customers, be less concerned about competition, reduce staff reponsibe for customer service and innovation, lobby politicians for our tax money, etc.

We are better off with competiton rather than megopolies like Facebook, Google, etc.


111 posted on 08/12/2018 6:02:34 PM PDT by apoliticalone (Political correctness should be defined as news media that exposes political corruption)
[ Post Reply | Private Reply | To 108 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson