Wednesday, June 2, 2010

Too Big to fail

From my myspace blog on November 26, 2008. I'm in the process of moving the 8 or 9 postings over, so all my blog will be here now.

I'm really annoyed by the companies that are too big to fail. I agree that they are too big to fail. They need to be helped, so they don't destroy innocent areas of the economy when the fall. I also think they are too big. Let's cut them in two or three parts, and then next time, we can let them pay for their own mistakes. These companies that are too big to fail are also too big to promote market innovation, and I think there is a lot of evidence that they actually reduce innovation. They are also too big to compete fairly. When you have a large percentage of an entire market, you become a maker of rules, not a follower of rules. And it becomes extremely easy to destroy smaller competitors by making end user costs artificially low in the area of competition until the competitor is out of business, and then jack up the prices to wherever you want. I think there needs to be a percentage number of market share that a business is allowed to have, and when it is surpassed, I think the company needs to be split. I think that, whatever the percentage, when people begin to say that the company is too big to fail, the company is too big!

Of course there are issues with splitting companies. Who has the authority to split an international corporation? No one. But they do have control in their own countries. I think it's something that the UN could handle, and now is the perfect time to do it.

Some of the reasons that there are many that hate the United States in other countries involve us being the source and home of many of these faceless and inhuman corporations. I think it was one of our corporations that decided to stop working with local governments to make water treatment plants in Africa, because it was more lucrative to sell them bottled water. The people in these areas either pay more for bottled water, or they have to risk drinking untreated water. The corporation and its investors get money, the people of Africa get diseases.

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