Live data from Hacker News

Want to rescue rural America? Bust monopolies

washingtonpost.com

31–40 of 353 posts

Re: Want to rescue rural America? Bust monopolies

#31

Earlier quoted context omitted.

This really opened my eye: a long time ago, there was actually a meaningful difference between voting D and voting R. I can't really imagine voting in such a context, but it sounds nice...

How can you call LGBT rights, women's rights, police consent decrees, environmental issues, and health care, just off the top of my head, meaningless?

Not the GP, but these are social issues largely, and while I care about them, I consider them less important than economic issues (for a multitude of reasons). And on economic/business issues, the two parties seems to have minimal differences.

Re: Want to rescue rural America? Bust monopolies

#32

Her two examples, the medical and agriculture sectors, are two of the most regulated industries around. A lot of these "monopolies" result because of regulation pushed by combination of well-meaning and self interested people and corporations (see bootleggers and baptists). Her examples suggest it'd be better to focus on the marriage between corporations and government, which allows companies to focus their energy on…

I don't know why you are getting downvoted because you're absolutely right. The first three markets named (airlines, telecommunications, health care) are all heavily regulated and the barrier to entries are controlled by the government, not natural market forces. Monopolies are not all bad. Sometimes a company has a monopoly because they just offer a better product (Amazon, Google) and they shouldn't be punished for…

Yeah, and it's debatable whether -- in these cases -- the monopolies would exist if it weren't for this regulation. The health care market is extremely distorted, and that's definitely true in the case of agriculture:

http://www.nytimes.com/2013/07/20/business/richer-farmers-bi...

Re: Want to rescue rural America? Bust monopolies

#33
post #3

> In 1994, at the height of the AIDS crisis, in which I lost several friends and a beloved employee to the disease, I started a manufacturing company in Little Elm, about 35 miles north of Dallas, to produce the first-ever automatically retracting syringe to eliminate the risk of nurses contracting HIV through accidental needle sticks. The syringe received rave reviews from nurses, hospital executives and public heal…

Power begets power, and that's just as true in markets as it is in politics. Large players have an entire playbook of dark, gray, and white strategies for getting a leg up on small players. Dumping, bundling, FUD, bribery, regulatory capture, moat-building, economies of scale, network effects, the list goes on.

A sizable fraction of large markets are dominated by monopolies or oligopolies. While it's arguable which factors contribute most, it's an observed fact that this happens, so I'm not sure I'd call any particular instance "a bit odd." Sadly.

Re: Want to rescue rural America? Bust monopolies

#34

I largely agree with the observations in the article although I believe the author misstates the intention of government with "But in the 1980s, folks in power decided bigger was better, and conventional political wisdom followed suit." The issue with the 80's was that the US economy was in a very weird place where we had low growth and very high inflation (called 'stagflation' at the time). The mechanics of the econ…

What if the burst of growth in the 90s could be attributed to the inflation in the 80s?

That'd be pretty unfortunate, if the low inflation mandate of the fed kept inflation below some inflection point where economic growth is more likely.

Re: Want to rescue rural America? Bust monopolies

#35
post #3

> In 1994, at the height of the AIDS crisis, in which I lost several friends and a beloved employee to the disease, I started a manufacturing company in Little Elm, about 35 miles north of Dallas, to produce the first-ever automatically retracting syringe to eliminate the risk of nurses contracting HIV through accidental needle sticks. The syringe received rave reviews from nurses, hospital executives and public heal…

I can speak for a different market in a different country (but I also lived in the US for a decade): IT freelancing in Germany.

I get paid well, but there is something really strange going on: I can't get my contracts directly. I always have to go through a company whose sole business it is to be an intermediate between the (large) company that wants to hire a freelancer and the freelancer. Note that those freelancers are not employed by that company and the relationship is pretty loose. The business pays the intermediary and they pay you, it's a per-project contract.

The large companies won't hire someone directly even though they would save lots of money (and freelancers would get more). Suspicious as you guys are you probably think that well, there must be a logical business reason that it actually really is worth the additional money being spent on the intermediary. For example, finding and bundling lots of freelancer resumes. While that sure is a reason it isn't nearly sufficient for an explanation, not only because they actually do precious little for the money they keep. Also, the legal side can't be the reason either when I look at how the contracts between me and the intermediary are set up.

To give one example from a very large client I worked for for 1.5 years as a freelancer, the reason I was told they go through the intermediary is that it makes their accounting much easier. Since I once worked for that company and experienced the exact same thing I was not surprised: When I worked for them in Silicon Valley I saved the company a lot of money by looking for an apartment myself. I ended up sharing one with somebody else. However, the expensive all-inclusive one-bedroom apartment I had had in Mountain View had the advantage that there only was a single bill (paid by corporate Amex card). The (far cheaper) shared apartment I got instead produced a handful of different invoices (furniture rental, cheques for the rent instead of Amex, etc.), so the company told me they would have preferred to pay the much higher amount from a single source. Which I don't quite understand - I do have some business background and understand accounting, in the computer age, what's the big deal? In the freelancer scenario they said it just works better with their SAP system then having lots of individual contracts. That company also had a big program to "streamline" and centralize their purchasing, which of course means having significantly less firms to deal with as a goal that overrides other concerns.

So, it seems the large businesses prefer to work with other large businesses, no matter how much money they could save. We don't even need to argue whether and/or how much legal and business reasons are valid or not, I think the only thing that matters for the purpose of the discussion is that the effect exists, and that that means "market" is more and more a lie the more of a countries wealth creation is done by big businesses. You don't need to look for actual "monopolies" in the classical sense, those firms quite voluntarily restrict themselves (and again, the bottom line is that it exists, how justifiable it is from the individual firm's POV is a different question, let's assume they know what they are doing and that it makes sense for them).

Re: Want to rescue rural America? Bust monopolies

#36
post #3

> In 1994, at the height of the AIDS crisis, in which I lost several friends and a beloved employee to the disease, I started a manufacturing company in Little Elm, about 35 miles north of Dallas, to produce the first-ever automatically retracting syringe to eliminate the risk of nurses contracting HIV through accidental needle sticks. The syringe received rave reviews from nurses, hospital executives and public heal…

There's a link in the next paragraph to http://washingtonmonthly.com/magazine/julyaugust-2010/dirty-... which tells more of the story. Claim is that rule change allowed hospitals to join group purchasing organiations (GPOs) which could get their fees from vendors rather than buyers, essentially creating a system of kickbacks from dominant vendors, which could be large enough for GPOs and thus hospitals and thus patie…

The dominant company might not have agreed to decent terms. After all, they own the market so they can starve a startup out. Though you are right, you'd think they would want to sell an improved syringe at huge margins.

Re: Want to rescue rural America? Bust monopolies

#37

Earlier quoted context omitted.

This really opened my eye: a long time ago, there was actually a meaningful difference between voting D and voting R. I can't really imagine voting in such a context, but it sounds nice...

How can you call LGBT rights, women's rights, police consent decrees, environmental issues, and health care, just off the top of my head, meaningless?

Ds talk a better game, but they rarely walk that talk. Take just your first example. W's first year in office, he wanted to standardize "civil unions" that would have entailed all the same rights as "traditional marriages". Of course, lots of "conservatives" were against that, so W reached across the aisle. Crickets. Ds decided they wanted to preserve that issue's political value, so it was more than a decade before gay and lesbian couples in conservative states had access to these rights.

Re: Want to rescue rural America? Bust monopolies

#38

Highly relevant: Matt Stoller in The Atlantic: "How Democrats Killed Their Populist Soul In the 1970s, a new wave of post-Watergate liberals stopped fighting monopoly power. The result is an increasingly dangerous political system." https://www.theatlantic.com/politics/archive/2016/10/how-dem...

This really opened my eye: a long time ago, there was actually a meaningful difference between voting D and voting R. I can't really imagine voting in such a context, but it sounds nice...

Similar things are happening in germany. Most people I talk to feel like the 2 major parties have lost their grit, their profile, and they have become mostly the same. However, in germany, this just gives new parties chances to rise. I think that's a sign of a healthy democray - if the old parties stop representing the people, voters will replace them.

Re: Want to rescue rural America? Bust monopolies

#39

Highly relevant: Matt Stoller in The Atlantic: "How Democrats Killed Their Populist Soul In the 1970s, a new wave of post-Watergate liberals stopped fighting monopoly power. The result is an increasingly dangerous political system." https://www.theatlantic.com/politics/archive/2016/10/how-dem...

This really opened my eye: a long time ago, there was actually a meaningful difference between voting D and voting R. I can't really imagine voting in such a context, but it sounds nice...

[deleted]

Re: Want to rescue rural America? Bust monopolies

#40
post #31

Earlier quoted context omitted.

How can you call LGBT rights, women's rights, police consent decrees, environmental issues, and health care, just off the top of my head, meaningless?

Not the GP, but these are social issues largely, and while I care about them, I consider them less important than economic issues (for a multitude of reasons). And on economic/business issues, the two parties seems to have minimal differences.

This is a somewhat relevant read - https://medium.com/@jamesallworth/the-slow-decay-of-americas...

Basically discussed shift from discussion in politics about democracy to economics.

Post reply on HN