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You're right, at least in the case of highly regulated markets and when the state creates artificial monopolies (e.g. electricity). I'll correct my original co
by lone_haxx0r 7y ago
You're right, at least in the case of highly regulated markets and when the state creates artificial monopolies (e.g. electricity).
I'll correct my original comment then:
At least private companies that compete in a relatively free market are losing their own earned money when they're inefficient, not someone else's.
- TheSpiceIsLife 7y agoIt’s still not right. Private companies are losing money on behalf of their owners or shareholders.
- leetcrew 7y agoa key difference is that the largest shareholders are proportionally affected by the waste, and have a proportionately large amount of power to do something about it.
- moate 7y agoI think most VCs would have some thoughts on the idea that a start up they just pumped millions into has lost "the start-ups money" in some stupid experiment and not theirs.
- lone_haxx0r 7y agoYou could say that the owners/shareholders are losing it themselves, because they voluntarily invested in the company, as opposed to the state, which takes your money even if you don't want it to.
- lazyasciiart 7y agoThat claim assumes a free market with perfect information, which is more than even Adam Smith was willing to do.