SuperMachoMan Posted June 18, 2014 Share Posted June 18, 2014 I just have this fear that if all regulations are gone all small businesses will eventually be absorbed by one huge corporation. It seems inevitable to me. This corporation will be highly efficient. The highest virtue will be efficiency. It's just in our nature to strive for it. Do you fear that our world will eventually become somewhat similar to "brave new world" where the rulers genetically engineer workers and dispense special drugs to keep them complacent? Link to comment Share on other sites More sharing options...
ribuck Posted June 18, 2014 Share Posted June 18, 2014 Regulations harm small businesses more than they harm big corporations, which suggests a continuing trend towards larger and larger corporations. However, individuals and small businesses are much more nimble, so they have the advantage in a fast-changing world. Ultimately, the balance depends on the type and degree of regulations, so I don't think it's predictable. Link to comment Share on other sites More sharing options...
prolix Posted June 18, 2014 Share Posted June 18, 2014 Another flagrant usage of the word "seems" in place of a rational argument. So many feels, so little time to support your wild assertions... Link to comment Share on other sites More sharing options...
corpus mentium Posted June 18, 2014 Share Posted June 18, 2014 If all regulations are gone, who says you would have to work for UberCorp rather than for yourself? Link to comment Share on other sites More sharing options...
Magnus Posted June 18, 2014 Share Posted June 18, 2014 The proliferation of varied business models functions on similar lines as biological evolution -- in the most vibrant environments, there is the greatest degree of speciation. Look at warm water aquatic environments, for example, where there is more biodiversity than scientists can even measure. Biological monoculture is extremely rare. Large corporations are not generally efficient. Rockefeller was a great reformer, and introduced huge leaps in efficiency to the oil business. But later on, as they grew larger, the success of the businesses he created were sustained not by efficiency, but by scale -- subsidized entry into new territories (often with military assistance), government-built roads (i.e., car subsidies), and fat government contracts. Even today, the largest buyer of fuel in the world is the Pentagon. Link to comment Share on other sites More sharing options...
Kevin Beal Posted June 18, 2014 Share Posted June 18, 2014 The cost to buy out all of those competitors grows more expensive with each one they try to buy putting them at a significant disadvantage compared to the remaining competitors. Absorbing other companies is a HUGE drain on resources. Link to comment Share on other sites More sharing options...
shirgall Posted June 18, 2014 Share Posted June 18, 2014 The cost to buy out all of those competitors grows more expensive with each one they try to buy putting them at a significant disadvantage compared to the remaining competitors. The cost of lobbying as a percentage of revenues goes down, and you end up with two big competitors in a particular industry who do their part to erect barriers to entry into their markets so they can happily co-exist with the other and keep the riff-raff out. It's no surprise that regulations hurt small businesses but where they *really* hurt is the mid-sized businesses that try to get traction. That painful turning point is enshrined at 50 employees in so many laws and regulations it's hard to count. Link to comment Share on other sites More sharing options...
Kevin Beal Posted June 18, 2014 Share Posted June 18, 2014 The cost of lobbying as a percentage of revenues goes down, and you end up with two big competitors in a particular industry who do their part to erect barriers to entry into their markets so they can happily co-exist with the other and keep the riff-raff out. Right. I'm thinking free markets, specifically. When you have access to a gun, economic arguments become a lot less relevant. Link to comment Share on other sites More sharing options...
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