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It’s bad because the government is artificially manipulating market forces and prevents price discovery. Imagine you’re thinking of starting a small airline, li
by oceanplexian 3y ago
It’s bad because the government is artificially manipulating market forces and prevents price discovery. Imagine you’re thinking of starting a small airline, like a Jetblue or Spirit, but investors know that if the business ever plans to exit through an acquisition, the government will intervene. Well, as an investor I’d be a lot less likely to invest.
As a result, you stifle the free market and prevent the emergence of competition. The knock on effect is less choice for the consumer and a less efficient market.
- ohashi 3y agoYet you completely ignore the non competition in monopolistic markets? Markets aren't pure and price discovery is stifled in a lot of ways. Arguing consolidation will help make a fairer market is ignorant if not disingenuous. Won't someone think of the poor investors? Again, that's not who public policy should serve.
- edgyquant 3y agoThis is not a bad thing. Businesses should plan to make a money themselves and not count on being acquired. I’d say that mindset is the source of a lot of our current economic woes