Comments by "LancesArmorStriking" (@LancesArmorStriking) on "Louis Rossmann"
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@chico9805
No, they didn't bribe politicians.
They didn't need to, and frankly (thankfully) by the time they fully consolidated horizontal and/or vertical integration, Congress was very hostile to those companies. After the governemnt had to ask JP Morgan to bail then out in the 1890s.
Congress passed the Sherman Anti-Trust Act and eventually broke up the monopolies, how do you think that was possible if they were also supposedly in the pockets of these same giants?
No. Most of the consolidation was done through predatory pricing (like Amazon does— when a competitor enters your market, adjust the price of your product so low (even if you take losses) that no company can compete, wait until they go out bust, raise prices again).
Or through corporate espionage— which is illegal, and requires state intervention to enforce.
Or simple acquisition.
Eventually your economy of scale simply can't be surpassed and you have a monopoly. All without government interference. Again, the US Government did very little in the 1890s, sharing your philosophy.
Let the markets "work their magic".
My point is we've seen that play out and it just doesn't work. It was called the Guilded Age for a reason.
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@notubist
No, you're wrong. I'm not taking shit from someone who can't spell Louis correctly.
You admitted to me being correct about oil but made an excuse for it.
Same with steel— Carnegie Steel's monopoly had fallen to 50% of US production from competition with Bethlehem Steel. That's still half of the entire market.
It took decades for anything substantial to change, and by the way the only reason was because Kennedy forced them to reverse their price gouging after WWII— but in the meantime, countless people (especially black convicts) were underpaid for their work.
This is precisely the type of thing government intervention is good for.
Limiting exploitation.
"ISPs are regulated by the government"— that's my POINT. Can you give me the specific reason why Comcast, Time Warner, and Cox haven't merged?
They've tried to before, but you seem to think it's because the market just magically regulates itself.
Mind telling me what's stopping them from doing what their shareholders would profit from them doing?
Pharma suing other companies isn't an example of big government actively taking a role.
Even if they didn't take sides, even if we lived in a libertarian country, companies could still sue new companies out of the market. We'd still need courts, this practice wouldn't change.
Or they'd just use predatory pricing, which requires no government involvement and is anti-competitive.
The only thing that could stop those big pharma companies from turning into monopolies (especially with products that have inelastic demand like insulin)?
Care to take a guess?
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