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The idea of free market is that public companies have financial incentives to produce safe products. If they produce an unsafe product, their market capital sh
by psadri 7y ago
The idea of free market is that public companies have financial incentives to produce safe products. If they produce an unsafe product, their market capital should suffer. This hasn’t happened to the extent I expected with Boeing. Is the market working as intended?
- salawat 7y agoOf course it hasn't happened to Boeing. There's no one else in their Civil Air Transport niche, and you'd be a fool to bet against a company with as much established Government business as Boeing. Overconsolidation has neutered the competitive landscape for airliner design and manufacture. Thino of a Government contract as a big fat insurance policy against free market forces. Add in a multiplier for being the only shop left in the country in certain verticals, and you'll find Adam Smith turning over in his grave as the market is paralyzed at the thought of putting down it's golden goose that has taken to laying hand grenades.