Nonsense, if companies took the loss from 2008 many banks and PE wouldn’t exist right now. A key part of capitalism is companies failing from bad investments, entropy, or other factors. You need the bust to create the boom.
Nonsense, if companies took the loss from 2008 many banks and PE wouldn’t exist right now. A key part of capitalism is companies failing from bad investments, entropy, or other factors. You need the bust to create the boom.
PeriodicallyPedantic@lemmy.ca 3 days ago
The Chicago school opposes monopolies and bailouts, but they support the conditions that inevitably lead to monopolies and too-big-to-fail companies.
ryathal@sh.itjust.works 3 days ago
The conditions get created by government distortion of a market. Chicago School discourages government intervention.
PeriodicallyPedantic@lemmy.ca 3 days ago
That lack of intervention is what created the conditions
Capitalism naturally moves towards monopoly. Government regulation prevents monopolies. Capitalism accumulates power. Capitalists use that power to influence the government into letting them accumulate more power, until they have enough power to remove the regulations that prevent monopolies, then the capitalists form monopolies, then we get the very situation that we’re describing.
ryathal@sh.itjust.works 2 days ago
Government regulation also creates and sustains monopolies. Most cable companies have competition prohibited by law. Bail outs allow companies that should fail and be replaced by many smaller companies to instead be more monopolistic.