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Not really. The problem there is more sector-wide capacity, not competition - companies have no incentive to drop prices in order to get more business because t
by makomk 4y ago
Not really. The problem there is more sector-wide capacity, not competition - companies have no incentive to drop prices in order to get more business because they're already selling as much as they can produce even at inflated prices and all their competitors are the same - and so long as that capacity problem is still there, it doesn't really matter how many companies it's divided up across.
As far as I can tell, the claims about unchecked corporate pricing power being to blame are only about the steps after that and the companies further down the supply chain that rely on the bottlenecked sectors for their inputs, either directly or indirectly. The argument is that unchecked pricing power, a lack of competition and the knowledge that their competitors are facing the same cost increases allows companies to pass on the costs in full or even pad out prices further and increase their profits.
(Also, a lot of the capacity issues are in fossil fuel production, which the mainstream media and activist investors have been campaigning to further reduce capacity in by trying to end new investment to replace declining wells - and telling people that the only downsides of this are for fossil fuel companies whose profits will reduce. Then they blamed corporate greed when this actually had the effect that basic economics said it would.)