Monopolies

Discussion in 'Politics & Law' started by Nosferatu_Alucard, Jul 12, 2006.

  1. Nosferatu_Alucard

    Nosferatu_Alucard Undead Intellectual

    "Governments should legislate to prevent monopolies becoming too powerful." Do you agree?

    I think that the government should be involved. I mean if you get a company that owns 100% of the water bottling market (for example) they can sell their product at what ever price they want and you'll have to buy it. Or something even worse, something that we all use everyday, like a company that owns all power plants or something.
     

  2. Malificus

    Malificus Likes snow

    They have, and I do agree. Not to prervent monopolies from getting to powerful, but to stop them. A monopoly can screw over an economy by having nobody to fight, thereby being given free reign with prices.
     
  3. Kazmarov

    Kazmarov For a Free Scotland

    Well, the only way for prices to be low is if there is competition, and a corporate entity can't compete against itself...the government should make sure that there are separate companies. Competitive corporations usually means higher quality goods and a stimulated economy.
     
  4. SenatorB

    SenatorB J.S.P.S

    Yup, when there are several groups all trying to attract the same group of buyers for a type of product, they have to come up with new ways to sell. This can include making the product better, making it cheaper, etc., but it's almost always better for the consumer than it would be otherwise. If there is only one group making a product, they can make it as poorly as they want, and as expensive as they choose, and people will have no choice to buy it simply because there isn't any alternative. I think if government involvement is necessary to prevent a single group from becoming a monopoly, it should happen, but for the most part things work out ok by themselves... or so one would hope.
     
  5. Kazmarov

    Kazmarov For a Free Scotland

    Generally monopolies get slaughtered if the market is ever opened up. Austrailia has Telstra for all telecommunications in the country, government-owned and a monopoly. But the country wants to open up as a free-market push, and the company is completely unprepared to compete.

    It goes against common sense in economics, as monopolies breed inefficient, low-quality companies.
     
  6. SenatorB

    SenatorB J.S.P.S

    A lot of the time, they provide a service or good that no other company can provide though (or at least if they do, not as cheap right away), so it's hard for other companies to break into the market.
     
  7. Kazmarov

    Kazmarov For a Free Scotland

    A lot of industries with not much infrastructure (either because they don't require it or that it hasn't been built because the industry is new) are easy to compete with, especially if they are competing with a company used to doing things on their own schedule.
     

Share This Page