2/28/2010

Corporate Monopolies










No question, corporate monopolies are bad. They raise their prices, their responsiveness goes down, their products stagnate. They don't have to trim down or become efficient in order to match the competition. Corporate monopolies are against the law, and the legal system has been very effective in stopping them.

Compare corporations that have competition. One common mantra is "you are either growing the company or you are dying." It is difficult to stay the same size in turbulent times. And shrinking is a big challenge too. How do you turn it around? Or at least stop it and arrive at a new, stable smaller size? Most companies have done all of these things.

Even shrunk when they had to. So why hasn't the government shrunk? Because it is the ultimate monopoly, they have no competition. As a result, it does exactly what it prevents corporations from doing: It grows, it stagnates, it becomes less responsive and raises prices (taxes). You have no choice in the matter unless you (and society) change it. And it costs you more per year than anything else you will every pay for, including your car or your house.

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