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> Government-granted monopolies reduce innovation and consumer surplus This has no basis on the real world. Many of the largest companies in the world are subs
by coliveira 9y ago
> Government-granted monopolies reduce innovation and consumer surplus
This has no basis on the real world. Many of the largest companies in the world are subsidized by the government, including in the US. For example, Boeing/Airbus is a de-facto duopoly, subsidized by taxpayers. The biggest problems of these companies is that they are owned by private individuals. Having them formed as coops solves a major issue. While not perfect, I don't see these coops as any worse than other companies.
- ucaetano 9y agoAt no point you talked about monopolies. And it has plenty of evidence in the real world, just look at AT&T, cable companies, ISPs, mail carriers, etc. And look at monopoly pricing. > The biggest problems of these companies is that they are owned by private individuals. Having them formed as coops solves a major issue. No, it doesn't. Coops are also owned by shareholders, and with government protection, they are monopolies, extracting economic rents from consumers. And economic rents are always, always bad.
- hueving 9y agoMaking those two companies employee-owned would do absolutely nothing to spur innovation. Changing who gets the profits doesn't change the fact that a lock on the market means the best strategy is to coast on your existing products.