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We need both efficient businesses, with their large economies of scale, as well as efficient markets, which reward innovative efficient businesses by allowing t
by octokatt 3y ago
We need both efficient businesses, with their large economies of scale, as well as efficient markets, which reward innovative efficient businesses by allowing them to get larger.
The trick in any attempt to create economic policy like taxes is to balance these two needs of capitalism, and right now the balance is sorely in favor of the former against the latter.
Small efficient businesses are being bought by larger ones (and are often taken apart), reducing their impact on the market by reducing their ability to threaten larger businesses. Since capitalism helps people by reducing prices through competition, the ability for oligopolies to use market control to reduce threats to themselves ultimately creates market inefficiency that translates into larger consumer expenses and less common good.
Because we're experiencing oligopoly control in most market places, breaking them apart and reducing them with taxes are the two largest levers to create more market competition. I hope this makes sense.