Crony capitalism may be cannibalizing productive capitalism in the U.S. • Hacker News Board

Re: Crony capitalism may be cannibalizing productive capitalism in the U.S.

#261

Post by bostonscott » Thu, Jul 06, 2017, 12:07 AM UTC

nickthemagicman wrote: post #109

bostonscott wrote: post #41

The concept of "crony capitalism" is a misnomer. "Crony" is not a type of capitalism, it's the antithesis of capitalism. It's enabled by giving too much power to government. For example. When insurance companies jack-up rates or impose customer "unfriendly" terms, they are not acting within the "free market." They are exploiting "crony'esque" rules that limit competition by restricting insurance companies from compet…

The article claims it's because of companies that have become too big. And the only way to break up those companies is government intervention.

The only practical way to break up large companies is to create a competitive environment that takes them down.

See: "Fortune 500 firms in 1955 vs. 2014; 88% are gone." If the largest companies were truly monopolies...

http://www.aei.org/publication/fortune-500-firms-in-1955-vs-...

Re: Crony capitalism may be cannibalizing productive capitalism in the U.S.

#262

Post by sharemywin » Thu, Jul 06, 2017, 5:41 PM UTC

bostonscott wrote: post #260

sharemywin wrote: post #259

Earlier quoted context omitted.

I'm not arguing that bad government regulations and rules don't create monopolies, but monopolies are also created through natural means and that still doesn't change my general premise. stock investors are offering a premium for monopolistic companies and rational companies management will combine companies to eventually become a monopoly to maximize profits and stockholder value. My basic argument is the only reaso…

Can you provide an example of such a monopoly, that you contend has been created through "natural means?" It's a sincere question. I can't think of a single example.

Depends on what you mean. Government defines property so just by how you define property you can change what "natural" means.

Controlling supply or distribution, network effects are natural ways to get to a monopoly.

Re: Crony capitalism may be cannibalizing productive capitalism in the U.S.

#263

Post by bostonscott » Mon, Jul 17, 2017, 7:42 PM UTC

sharemywin wrote: post #262

bostonscott wrote: post #260

Earlier quoted context omitted.

Can you provide an example of such a monopoly, that you contend has been created through "natural means?" It's a sincere question. I can't think of a single example.

Depends on what you mean. Government defines property so just by how you define property you can change what "natural" means. Controlling supply or distribution, network effects are natural ways to get to a monopoly.

You said:

"but monopolies are also created through natural means and that still doesn't change my general premise"

I'm just looking for an example of a single monopoly that fits your statement.