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First people said regulations equal red tape. That is not what I asked. Not all regulation is red tape.
I asked why deregulation leads to more competition. And no one can give a single reason.
I have given a accurate concise answer in the most simplest of ways to your question. If my answer is not satisfying, either you’re improperly wording your question or there is no satisfying answer to your question. Conservatives are not against regulations. An unfettered capitalist system would be dangerous to an economy. Conservatives also aren’t against government. We believe in a limited government with a limited role. This limited role provides rules, laws, and regulations for a free market to thrive. As conservatives, we believe in the rule of law and a civil society and in order for there to be a civil society, there must be rules, laws, and regulations. It’s when government overreaches in those responsibilities and causes the free market to be stymied. So, if this doesn’t answer your question, possibly you can help us out. Can you provide an answer as to why over-regulation promotes competition? Maybe by you answering that question could help us better understand exactly where you are coming from.
There was a time when democrats welcomed deregulation. Deregulation helps avoid complexity, avoid choosing sides in business competition and avoids balancing the interests of competitors. By the government stepping aside, competition is encouraged. Under Carter, the telecommunication industry, banking and transpiration industries were all deregulated. Its hard to image, but when Carter took office, the phone company was a monopoly, you could not even own your own phone, you leased it. There was no choice of providers.
There was a time when democrats welcomed deregulation. Deregulation helps avoid complexity, avoid choosing sides in business competition and avoids balancing the interests of competitors. By the government stepping aside, competition is encouraged. Under Carter, the telecommunication industry, banking and transpiration industries were all deregulated. Its hard to image, but when Carter took office, the phone company was a monopoly, you could not even own your own phone, you leased it. There was no choice of providers.
Because Dems used to be for the working man...Joe Main Street.
But the Dems found the corporations with their lobbyists...campaign contributions and cushy jobs after they leave office was just too good to pass up.
I hear this from republicans/conservatives all the time, but there is never a substantive answer as to why.
Even without a degree in business, it is common sense that Big fish eat little fish.
The bigger company, without restraints, will have access to better suppliers, better prices, better lawyers, and will beat out the competition.
Yeah their are specific industries (in their infancy) like aerospace (space travel), microchips, and a few others that do better with small firms, but that is because of how fast moving those industries are.
Most of the economy is stagnant or slow moving, there is no genius invention around the corner ready to throw a wrench into the competition.
So why, not including government intervention/regulations, would less regulation lead to more competition?
And btw I am not saying competition is good, I think this country fetishizes competition, but that is besides the point.
So why do you as a republican believe this if it goes against all common sense?
If I had a nickel for every time I saw someone start a thread this way, I could retire.
I asked why would it lead to more COMPETITION (meaning more smaller companies). Not about cheaper prices.
barriers to entry, chiefly unnecessary levels of licensure and other costs that are "required" before you open and on an ongoing basis. Look at all the personal services.
barriers to entry, chiefly unnecessary levels of licensure and other costs that are "required" before you open and on an ongoing basis. Look at all the personal services.
A good number of barriers exist that hurt entrepreneurs which the big boys can easily afford.
Just look at Cable TV and Internet. It is costly. For those area where Cable serve, it usually has no competition. It is a regulated monopoly. There is no little guy because the regulation make it too costly for the little guy to enter.
You're moving in the right direction. I worked for the AT&T/Bell System at the time it was deregulated. Deregulation definitely made sense. Look at the differences in the telecommunications industry since 1982. All of the change has not been solely to the breakup of AT&T, much has also been to advances in technology, but I don't think it would've happened as quickly if AT&T has not been deregulated and broken up.
While I believe that example of deregulation was positive, I believe the government also has to enforce antitrust laws. I live in an area where my only choice for broadband internet service is Comcast. I am just outside Verizon's service area for their Fios service. We have very little competition for broadband internet in the U.S. and the result is lower speeds and higher costs than most modern industrialized countries. Here is a link to a comparison to the OECD (33 of the world's richest industrial countries): https://www.broadbandsearch.net/blog...t-navigation-2 The U.S. has the second highest cost of these 33 countries.
Banking and the airline industry are other examples where it appears too much consolidation has taken place. There have been very few times the federal government has stepped in and halted a merger or acquisition due to antitrust laws.
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