Should some corporations be broken up to create more competition in the market place?

[independentusa]

I have read that up to 60% of inflation is caused by the huge profits of certain corporations. The reason for these price increases is not inflationary pressures, but that one or more corporations in certain markets control so much of the market that they can "set" prices instead of having them set by competition which is when the capitalistic system is working at its best for both companies and the people/community. In the past the government has broken up these huge market controlling corporations to insure market competition. So should the government do so again if certain corporations have grown so huge as to diminish competition and control markets and market pricing?

 

[lwf]

If you're asking if this should be a power the government has, absolutely. The power of the people to destroy monopolies is required for capitalism to work. The purpose of a business venture in a capitalist system is to destroy competition and enrich itself in the process. The purpose of the government in a capitalist system is to protect and foster competition. When the two go head to head, the government should ALWAYS have enough power to win. Capitalism itself is at stake when the government loses that power.

 

[Gateman_Wen]

I have read that up to 60% of inflation is caused by the huge profits of certain corporations. The reason for these price increases is not inflationary pressures, but that one or more corporations in certain markets control so much of the market that they can "set" prices instead of having them set by competition which is when the capitalistic system is working at its best for both companies and the people/community. In the past the government has broken up these huge market controlling corporations to insure market competition. So should the government do so again if certain corporations have grown so huge as to diminish competition and control markets and market pricing?

Yes, crushing monopolies is and has been a duty of the government. They just haven't been using it for a while.

 

[Mycroft]

I have read that up to 60% of inflation is caused by the huge profits of certain corporations. The reason for these price increases is not inflationary pressures, but that one or more corporations in certain markets control so much of the market that they can "set" prices instead of having them set by competition which is when the capitalistic system is working at its best for both companies and the people/community. In the past the government has broken up these huge market controlling corporations to insure market competition. So should the government do so again if certain corporations have grown so huge as to diminish competition and control markets and market pricing?

The problem is...

Too many politicians are being paid by those "certain corporations". The government won't touch them.

or...

The government will target selected corporations based on ideology instead of reason and logic.

However, if the government was inclined to set their sights on monopolies, I'd rather they direct their attention to corporations that control information, such as the big four or five media conglomerations and the three or four digital media giants.

Frankly, I don't believe that "up to 60% of inflation is caused by huge profits of certain corporations". I think it's caused by policies and actions of the Biden puppet masters. If you want to deal with inflation, that's where to start.

 

[independentusa]

The problem is...

Too many politicians are being paid by those "certain corporations". The government won't touch them.

or...

The government will target selected corporations based on ideology instead of reason and logic.

However, if the government was inclined to set their sights on monopolies, I'd rather they direct their attention to corporations that control information, such as the big four or five media conglomerations and the three or four digital media giants.

Frankly, I don't believe that "up to 60% of inflation is caused by huge profits of certain corporations". I think it's caused by policies and actions of the Biden puppet masters. If you want to deal with inflation, that's where to start.

You are right that to break up corporations is a difficult thing with political overtones, but do we allow the continued price gauging to continue forever? Presently corporations owe nothing to the public, only to stockholders and they want to continue to see huge profits, even at the cost to the nation. Do you have a better idea in a capitalistic economy?

 

[Mycroft]

You are right that to break up corporations is a difficult thing with political overtones, but do we allow the continued price gauging to continue forever? Presently corporations owe nothing to the public, only to stockholders and they want to continue to see huge profits, even at the cost to the nation. Do you have a better idea in a capitalistic economy?

Yes. Econ101.

Supply/Demand/Price ratio.

Keep the damned government out of it.

You do that and you won't have corporations buying off politicians. Corporations will be at the mercy of the consumer.

 

[Craig234]

Yes, crushing monopolies is and has been a duty of the government. They just haven't been using it for a while.

Reagan mostly killed it IIRC.

 

[Craig234]

We need to do things that limit the power of corporations, allowing them to be productive and profitable while not being powerful enough to be especially harmful and evade or control the government's oversight of them.

 

[Gateman_Wen]

Reagan mostly killed it IIRC.

Most likely. He set us on the path to wealth inequality for sure.

 

[independentusa]

Yes. Econ101.

Supply/Demand/Price ratio.

Keep the damned government out of it.

You do that and you won't have corporations buying off politicians. Corporations will be at the mercy of the consumer.

Having a degree in economics I think I understand it, but when profits soar to levels never be fore seen, then yo have to look at the market. The problem with the market is that there are too few companies to insure competition. Without competition, the market get skewed and the remaining companies can set prices at whatever level they wish. The proof is in the profits and he level of profits.

 

[independentusa]

We need to do things that limit the power of corporations, allowing them to be productive and profitable while not being powerful enough to be especially harmful and evade or control the government's oversight of them.

We need to put competition back into the market or this will just continue, ie. the inflation. There is no incentive to increase production when you can get higher profits by producing less. Less cost and more profit as long as there is no real competition in the marketplace.