Live data from Hacker News

Want to rescue rural America? Bust monopolies

washingtonpost.com

41–50 of 353 posts

Re: Want to rescue rural America? Bust monopolies

#41
post #26

Earlier quoted context omitted.

is TSI a CLEC?

Nope. We argued that we were providing data services under the FCC definition of utility. The only real person who got in our way was the city attorney. He said that internet didn't qualify as Montana Code (circa 1950) only mentioned telephone and telegraph. So we registered with the PSC as a telegraph provider...

Awesome. Do you actually have to sell telegram services?

Re: Want to rescue rural America? Bust monopolies

#42
Multiple other comments in here about this particular niche that the subject of the story went into (medical supplies), but what came to mind to me was a similar story about how it's a similar situation with the golf ball market [1] and from many other stories with eyeglasses (Luxottica artificially dominates the market).

These are both cases where it's not so much anti-merger/monopoly law that's the culprit, but the general structure of the legal system that favors those with the larger pockets and forces out upstart manufacturers.

1 - http://www.golfdigest.com/story/ball-wars-costco-files-lawsu...

Re: Want to rescue rural America? Bust monopolies

#43
post #24
post #6

Or make it profitable to build shit in this country again. If you taxed the hell out of manufactured imports, and loosened up the regulations that are choking US businesses to death, you'd have less meth-and-fentanyl scourged abandoned mill towns.

you mean like electrical, fire, and general safety regulations? going off your "mill town" example, would you rather copy Bangladesh where the buildings collapse and children as young as 11 work 70 hours weeks in the textile industry?

One needn't always trot out an extreme to try to discredit a point. I've watched my home county wither and die over the last 20 years as increasingly they have been undercut by goods produced under conditions that would be illegal in this country. If you want to regulate industries to make them incredibly safe, you have to penalize other countries that are willing to cut those corners, or all you have done is extinguish your industries.

Re: Want to rescue rural America? Bust monopolies

#44
Does anyone else think that nearly all huge companies exist due to monopolies or near-monopolies? MS has monopoly on desktops. Apple on cell phones and tablets. Facebook on social networking. Google on search. I think any market without at least 3-4 strong competitors will devolve into one dominant player who can milk more from the customer base.

Re: Want to rescue rural America? Bust monopolies

#45
post #4

"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 health officials, a major grant from the National Institutes of Health and robust private investment. But when my partn…

That's the thing though, that is exactly what a late stage "free market" looks like. What you need is a heavily regulated market that prevents exactly this behaviour. People need to stop wishing for the "free" market. The term is abused by orators and manipulators who prey on peoples desire for a market which is free in the spirit of the word, and deliver to them a market which is technically "free" and horrible.

> That's the thing though, that is exactly what a late stage "free market" looks like.

How would you know? We haven't had anything approaching a free market since the early 20th century, even if we ignore government-granted monopolies via restricted land grants and patents.

Re: Want to rescue rural America? Bust monopolies

#46

Earlier quoted context omitted.

Nope. We argued that we were providing data services under the FCC definition of utility. The only real person who got in our way was the city attorney. He said that internet didn't qualify as Montana Code (circa 1950) only mentioned telephone and telegraph. So we registered with the PSC as a telegraph provider...

Awesome. Do you actually have to sell telegram services?

Legally, I don't think so. But we did build a little Raspberry Pi based machine with a telegraph key. It needs some more work, but there are people who are legitimately wanting to buy the service.

Re: Want to rescue rural America? Bust monopolies

#47
post #4

"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 health officials, a major grant from the National Institutes of Health and robust private investment. But when my partn…

What you're describing is a fair market, not a free one.

Re: Want to rescue rural America? Bust monopolies

#48

Earlier quoted context omitted.

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.

The same bundling dynamics can play out between manufacturer and vendor as play out between vendor and hospital.

Re: Want to rescue rural America? Bust monopolies

#50
post #45

Earlier quoted context omitted.

That's the thing though, that is exactly what a late stage "free market" looks like. What you need is a heavily regulated market that prevents exactly this behaviour. People need to stop wishing for the "free" market. The term is abused by orators and manipulators who prey on peoples desire for a market which is free in the spirit of the word, and deliver to them a market which is technically "free" and horrible.

> That's the thing though, that is exactly what a late stage "free market" looks like. How would you know? We haven't had anything approaching a free market since the early 20th century, even if we ignore government-granted monopolies via restricted land grants and patents.

At least to me it looks like making the market more "free" by means of deregulation would only exacerbate the problems mentioned above.
Post reply on HN