81–90 of 193 posts
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> see if competition takes care of the "problem". We have seen: for industries with big capital requirements or heavy regulatory frameworks (enacted for everyone's safety), it just doesn't .
Which industries with big capital requirements don't have competitors?
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Unfortunately the old American disease of not ensuring competition and instead passing regulation ensuring monopolies stay in power means the "problem" is not actual solved, and is in fact made worse.
> The US is home to over 4,700 FDIC-insured banks. It’s not far off from the EU, which has 5,171, but stop and consider that the EU consists of 27 countries. The UK currently has 365 banks, and Canada has 83
The USA has one bank for every 70617 people.
The EU has one bank for every 86637 people.
Italy is rather much more concentrated, having seen a huge decrease in unique banks over the last decade. It has one bank for every 134624 people.
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I didn't think it was possible but banking shills apparently exist > If one wants free enterprise and reap its benefits who wants this from banking??? > one has to allow high profits for companies and see if competition takes care of the "problem" ah, yes - we've seen this work so many times before!
I don't know. I kind of like competition in banking. I like free checking, ATM fee reimbursement, better customer service, better websites and apps, better alerting etc. You get that through competition for my deposits.
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>Shareholders of the bank suffer Won't someone think of the poor bank shareholders? /s
I mean, your parents and their 401k that holds all the money they're planning to retire on feels decently human and relatable to me.
In America anyway, the wealthiest 1% own 53% of the stock market. I highly doubt that the "your parents" would benefit more from funding of their investment accounts than they would benefit from the tax revenue generated. Of course my assumption is highly dependent on public policy.
This is an old European disease. Corporate profits are often seen as an adverse result; of consumers being taken advantage of unfairly. Taxing excess profits beyond what are already high tax rates is popular amongst voters (e.g. see poll results in the UK, 2022). However, this lowers the appeal for new entrants to enter these markets to compete for these excess profits through better and more efficient products and s…
I didn't think it was possible but banking shills apparently exist > If one wants free enterprise and reap its benefits who wants this from banking??? > one has to allow high profits for companies and see if competition takes care of the "problem" ah, yes - we've seen this work so many times before!
It's wild to imagine complaining about them being taxed but few complained about bails out from tax payers.
This is a bit strange as presumably interest rates were raised in the first place to prevent inflation. Turning around and scolding the banks for doing what the government wanted in the first place seems counter productive. Wouldn't redistributing these profits back to mortgage holders just undermine the raising of interest rates in the first place?
To curb inflation, the windfall (interest rate) taxes should be burned.
This is a bit strange as presumably interest rates were raised in the first place to prevent inflation. Turning around and scolding the banks for doing what the government wanted in the first place seems counter productive. Wouldn't redistributing these profits back to mortgage holders just undermine the raising of interest rates in the first place?
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Which industries with big capital requirements don't have competitors?
Social networks, search engines.
I can buy a script to build a Facebook clone from an Indian Dev for like $50.
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> No one suffers from taxing windfall profits. Windfall , by definition, being unexpectedly high profits. 1. This is objectively false. Shareholders of the bank suffer, because they get less profits. This may not be a crowd that solicits a lot of sympathy, but they still exist. 2. How do you feel about VCs and startups? Their entire business model is investing in 100 companies, knowing that 99 will fail but 1 will ma…
12.43% of SPY is financials. We are all bank shareholders.
And about half of those stocks are held by the top 1%.