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Guess what... The more regulation, the harder it is to compete against too-big-to-fail well stablished corporations. It's like no one here ever heard what regu

by henvic 5y ago

Guess what... The more regulation, the harder it is to compete against too-big-to-fail well stablished corporations. It's like no one here ever heard what regulatory capture or lobby is. https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Regulatory_capture Google is right in this case, but people will fail to recognize it, and ask for more state overreach that will end up making it harder to have multiple options in the future.

kibwen 5y ago
Competition is important for the well-being of consumers. However, it is in the nature of markets that over time they will experience consolidation and centralization, due to the benefits of network effects and economies of scale. This consolidation reduces competition, harming consumers. It is the necessary role of government to occasionally step in and break up such companies, to forcibly reintroduce competition. That's the form of regulation that we need right now. Break these megacorporations up.
- charcircuit 5y ago
  So just because someone was so good at competing that they dominate a market that means that they should be punished? I don't think punishing success provides good incentives.
- henvic 5y ago
  > It is the necessary role of government to occasionally step in and break up such companies, to forcibly reintroduce competition. That's the form of regulation that we need right now. Break these megacorporations up. What you're mentioning is both unjust and unproductive if the company grows thanks to satisfying customers. It's also a recipe for disaster: Trying to break down megacorporations usually ends up creating even bigger megacorporations. You try to do so, and what you end up with is lobby groups, even more powerful conglomerate/holdings well established somewhere they can do it with advantages over the regular Mom and Pop stores that don't have access to this level of economies of scale and so on.

by henvic 5y ago

kibwen 5y ago

Competition is important for the well-being of consumers. However, it is in the nature of markets that over time they will experience consolidation and centralization, due to the benefits of network effects and economies of scale. This consolidation reduces competition, harming consumers. It is the necessary role of government to occasionally step in and break up such companies, to forcibly reintroduce competition. That's the form of regulation that we need right now. Break these megacorporations up.

charcircuit 5y ago
So just because someone was so good at competing that they dominate a market that means that they should be punished? I don't think punishing success provides good incentives.
henvic 5y ago
> It is the necessary role of government to occasionally step in and break up such companies, to forcibly reintroduce competition. That's the form of regulation that we need right now. Break these megacorporations up. What you're mentioning is both unjust and unproductive if the company grows thanks to satisfying customers. It's also a recipe for disaster: Trying to break down megacorporations usually ends up creating even bigger megacorporations. You try to do so, and what you end up with is lobby groups, even more powerful conglomerate/holdings well established somewhere they can do it with advantages over the regular Mom and Pop stores that don't have access to this level of economies of scale and so on.