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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?
Airline deregulation has resulted in far lower prices for customers. Adjust for inflation and the NYC-Paris round trip economy ticket in 1960 was about $5000. Pre-covid you could find that route for $600-$800 in economy and $2500 in business class with lie flat sleeper seats.
Telecom and the break up of Ma Bell. Back in the day, long distance calls were so expensive you only called Grandma in Miami on her birthday, Christmas, and mother's Day. Now you can get unlimited nationwide phone calls with your cell service for like $30/month. Back of the envelope, that's about $5-6 in 1970 dollars which is what that single call to grandma in Miami would run back in the day.
your premiss is wrong from the start. History is filled with mega corps being taking down by new competitors in the market. And this happens more then just to the few industries you mentioned. For instance one of my first jobs was Kmart. I worked for them for a number of years and i worked with people who had worked for them for decades. I remember when Walmart first opened in our town, a few managers were worried because they had overtaken kmart in a number of ikeymarkets but still most employees thought it was a joke. Nowdays there are a heck of a lot of walmarts there and only one sad kmart. Why is Amazon so dominating, Sears had that type of model set up over one hundred years ago yet sears is gone. They had all the advantages you mentioned but just didn't take it online using their existing mail order system. Heck people used to buy houses from Sears catalogues. The internet of a century ago.
Mega Corps become lazy, start to fall behind on the times and often new vibrant companies come into the market who innovate in a way these giants cannot. To much regulation keeps these small companies from forming. Without these small vibrant startups not only would there often be no competition, leading to higher prices, they also serve to keep the Mega Corps on their toes.
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?
Simple...regulations apply to those unable to obtain an exemption to the regulation, i.e., the little guy.
Airline deregulation has resulted in far lower prices for customers. Adjust for inflation and the NYC-Paris round trip economy ticket in 1960 was about $5000. Pre-covid you could find that route for $600-$800 in economy and $2500 in business class with lie flat sleeper seats.
Telecom and the break up of Ma Bell. Back in the day, long distance calls were so expensive you only called Grandma in Miami on her birthday, Christmas, and mother's Day. Now you can get unlimited nationwide phone calls with your cell service for like $30/month. Back of the envelope, that's about $5-6 in 1970 dollars which is what that single call to grandma in Miami would run back in the day.
That is not what I asked.
I asked why would it lead to more COMPETITION (meaning more smaller companies). Not about cheaper prices.
your premiss is wrong from the start. History is filled with mega corps being taking down by new competitors in the market. And this happens more then just to the few industries you mentioned. For instance one of my first jobs was Kmart. I worked for them for a number of years and i worked with people who had worked for them for decades. I remember when Walmart first opened in our town, a few managers were worried because they had overtaken kmart in a number of ikeymarkets but still most employees thought it was a joke. Nowdays there are a heck of a lot of walmarts there and only one sad kmart. Why is Amazon so dominating, Sears had that type of model set up over one hundred years ago yet sears is gone. They had all the advantages you mentioned but just didn't take it online using their existing mail order system. Heck people used to buy houses from Sears catalogues. The internet of a century ago.
Mega Corps become lazy, start to fall behind on the times and often new vibrant companies come into the market who innovate in a way these giants cannot. To much regulation keeps these small companies from forming. Without these small vibrant startups not only would there often be no competition, lowering prices, they also serve to keep the Mega Corps on their toes.
That is a David and goliath story.
It does not happen often enough to constitute competition.
Empire grew old and were beaten by upstarts all the time. That is not competition, that is one a new giant replacing the old giant. Like the Byzantine declined and were replaced by the Ottomans.
How does deregulation lead to smaller companies competing more?
Competition among owners/speculators is good because it puts downward pressure on prices they charge customers, and upward pressure on wages of the people they higher
What exactly is deregulation? YOu need to be more specific.
Less competition among owners/speculators means oligarchy going into monopoly.
Competition among owners/speculators is good because it puts downward pressure on prices they charge customers, and upward pressure on wages of the people they higher
What exactly is deregulation? YOu need to be more specific.
Less competition among owners/speculators means oligarchy going into monopoly.
Republicans are the ones who are blanketly against regulation.
"GOVERNMENT STAY OUT OF BUSINESS" they scream.
So I ask, by what logic does deregulation lead to more competition? Please answer this question.
The lack of costly and prohibitive regulations in the legal Oklahoma medical marijuana program. So you can end you with around 3 dozen medical marijuana dispensaries in a town of 50,000. That's a lot of competition.
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