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A free market on capital intensive industries chooses for efficiency, and efficiency means having single large dominant players at each step in the chain. Free
by jgeada 3y ago
A free market on capital intensive industries chooses for efficiency, and efficiency means having single large dominant players at each step in the chain. Free markets create monopolies.
Regulations are what prevent monopolies and we've forgotten about enforcement of those rules for decades. So we ended up with concentrated monopolies and single points of failures in these critical industries.
Paltry subsidies and no new regulations means nothing will actually change, other than a few billion dollars going from tax payers into some small number of wealthy people's pockets.
- maerF0x0 3y ago> Free markets create monopolies. I have never thought this to be the case, could you provide some backing to your claim?
- jgeada 3y agoIt is described in many places, including in detail here: https://archive.org/details/cu31924096224799 https://archive.org/details/cu31924096224799 Some other info here https://www.economicshelp.org/blog/21726/concepts/why-does-capitalism-cause-monopoly/ https://www.economicshelp.org/blog/21726/concepts/why-does-c... In actuality though, this is almost religious. It doesn't matter than monopolies have always appeared in markets and been dealt with by regulation; believers in free markets will always argue that the actual cases weren't really monopolies or that they'd not have lasted. /Shrug
- tastyfreeze 3y agoFree markets do not create monopolies. Monopolies require government carve outs that make competition less likely or impossible.