May 11, 2018

Monopoly is the goal, monopoly is the problem

Every public company seeks, at some level, to be a monopoly, an organization with enough market power to dictate pricing, profits and the future of the market.

And monopoly is also a critical failure of capitalism. When monopoly occurs, when the customer no longer has a choice, prices go up, innovation goes down and mostly, consumers have no voice.

A key role of government is to create an environment where monopolies don’t happen–and when they do, to intervene and eliminate them.

Choice is the key word in making markets work. No choice, no market.