What Happens to Monopolies?

monopoliesWhen your firm is the most massive entity in the field there is reason to believe that competition is lacking. The argument is that with competition comes affordability through better prices. This is what we saw when Microsoft was attacked over a decade ago. This is also what we saw when Standard Oil was attacked using much the same method. These titans of industry were history makers and considered exceptional because they grew to mammoth proportions quickly.

The question that's being explored here is whether or not it pays to deregulate business entities that defy the odds of the usual multi-million dollar firm. With titans in control of the majority of the cash flow, the other start-ups may grow slightly dismayed. It's probable that because it's hard to grow their business beyond the set limitations they decide to take customers away from the usual seller. This is done with the help of the government. Attorneys and lobbyists argue and make agreements so that more people can get a gigantic piece of an already larger than usual pie.

Therefore, this system of destroying monopolies spreads the wealth. But with America existing as a capitalist nation, destroying monopolies of industry just isn't in line with established teachings and principles. Sharing the wealth is an element of communism such that the populace comes to benefit, or so we're lead to believe. Without regard to how the business is being divided the rich will continue to get rich, as they look out for their own kind. The wealthy are going to benefit for an eternity.

Looking back in retrospect at the Standard Oil situation and others like it you can see that it's just not congruent to the higher cause of capitalism and all that it promises. Monopolies will continue to come into existence and they will, in turn, get taken down over time. This is the guarantee of life. So, why blame another for having the right idea at the right time under this system?

Random Posts


Advertising



Comments are closed.

Advertising

Enter your email address:

Delivered by FeedBurner

Links