The degree of concentration of US monopoly capital is unprecedented. (lemmygrad.ml)

submitted 4 months ago by yogthos@lemmygrad.ml to c/chapotraphouse@hexbear.net

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source: https://www.cambridge.org/core/journals/business-and-politics/article/hidden-power-of-the-big-three-passive-index-funds-reconcentration-of-corporate-ownership-and-new-financial-risk/30AD689509AAD62F5B677E916C28C4B6

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[-] moujikman@hexbear.net 6 points 4 months ago

Large companies can only exist if they receive monopoly rents. Otherwise incumbents would be outcompeted by challengers and we'd see a convergence of many small firms with low profit margins. So yeah, its the responsibility of the government to regulate monopolization and they aren't doing it.

[-] Collatz_problem@hexbear.net 5 points 4 months ago

Economies of scale are a thing, so breaking up monopolies can easily result in low efficiency. Much better is to nationalize them.

[-] moujikman@hexbear.net 1 points 4 months ago

Yeah, it's a major consideration when determining if a merger should happen, e.g. Krogers. Just because its more efficient doesn't mean you get consumer benefit because you should expect them to profit maximize with monopoly rents. I mean definitely +1 on nationalize them rather than let capitalism go unfettered, but I'm making a general observation that large companies can only be large because they can extract monopoly rents, rather than just a barrier to entry to match efficiencies of scale thing.