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> This idea that "very large company" -> "productive economy" needs to die. I am economically naive, but I also have never understood this argument. I asked a
by koe123 1mo ago
> This idea that "very large company" -> "productive economy" needs to die.
I am economically naive, but I also have never understood this argument. I asked a Spanish friend what Spain needed, he said “more big companies”. Is it because a big company provides you something closer to a monopoly, and can do so internationally?
- peppevignanello 1mo agoNot that your Spanish friend's opinion on what Spain needs is enough to exemplify what Spaniards (or Europeans) as a whole want and think.
- chii 1mo agoit's a crude approximation to economies of scale. However, big doesn't always mean economies of scale because efficiency tends to drop when growing big, unless the head works hard to ensure it isnt bloating. Unfortunately, sometimes these managers (i.e., non-founding managers) rather have a bigger fiefdom rather than a better/more efficient company.