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It seems like the common factor enforcing the monopoly is high capital cost as a barrier to entry. That moat allows monopolizing companies to focus their resour
by arrosenberg 7y ago
It seems like the common factor enforcing the monopoly is high capital cost as a barrier to entry. That moat allows monopolizing companies to focus their resources on capturing the state to maintain their monopoly status.
The remedy would seem to be for more decisive government action - to regulate or nationalize the infrastructure, break up the incumbents as necessary, and create a robust market for services that utilize the infrastructure and pay rents and taxes to the government.
- kortilla 7y agoOr strip the government of its power to enable monopolies in the first place.
- arrosenberg 7y agoWe've already seen that show. SPOILER: The government didn't create these monopolies. https://en.wikipedia.org/wiki/Northern_Securities_Company https://en.wikipedia.org/wiki/Northern_Securities_Company https://en.wikipedia.org/wiki/Standard_Oil https://en.wikipedia.org/wiki/Standard_Oil My condolences for your narrative.
- kortilla 7y agoI recommend you read the section from the Standard Oil article on the criticism of the breakup. Also, your rebuke is pretty weak if you have one example compared to the thousands of government granted monopolies all over the US.
- pdonis 7y agoExactly.