Originally posted by danoff
Where did you argument go? I responded, what do you think? Am I right?
Sorry, I thought people had lost interest, if you like, I'll continue.
quote:
Because corporations work for the good of investors, that is, they are obligated to make money or no-one will invest in them.
Nope. Corporations work to make profits so that they can grow and grow. Why do they want to grow so much? Because then when its all said and done, they can sell their company for a ridiculous amount of money.
you say 'nope' but then agree. Saying that they 'grow and grow so people are interesting in buying them' - is exactly the same as 'make money so that people invest in them'.
It's the basic principle of capitalism (capital - invest - get it?) and is enshrined in law.
quote:
In an unregulated enviroment, it would be in the best interest of the corporation to be a monopoly, because it could then charge whatever it wanted for its products.
Yup. But thats extremely hard to do. The little guy is out there undercutting you all the time. Plus, youd be amazed at what people will stop using when it costs too much.
not is an unregulated enviroment. large corporations can use lots of things to wipe out smaller competitors. A favourite used to be undercutting - you sell your product at a much smaller price than the 'little guy', absorbing the cost with capital, then once the 'little guy' has gone broke, continue your monopoly.
Or you could do the microsoft thing and buy out your opponents.
Involve them in costly legal disputes.
Collude with suppliers.
And the list goes on...
Monopolies are bad for the people. But they dont happen often. I think a good argument could be made that there has never been a monopoly in American history. Some would say that there have been, but these are iffy cases.
That's because there are laws preventing them. Monopolies would and do happen without regulation.
Regardless, its not hard to put laws in place to prevent them. It is, however, hard to enforce those laws in a way that doesnt infringe on the personal rights of business owners.[/b]
There already are laws against monopoly, when the law is enforced the business will lose out, which is why there are no monopolies. Also, note that capitalism is not at all linked to personal freedoms. It's an economic system.
Yup slavery is bad for the economy but not necessary in capitalism and it infringes on personal rights.
It is not necessary, but I'm sure some companies would jump at the chance to use it if there were no regulation.
Personal rights are not linked to the economic system.
We do live in a heavily regulated society, but there are far too many corporate laws that are chocking the economic growth of the country.
None the less, some legislation is required otherwise the conditions stated above can occur. Which is why I maintain that some regulation is required to prevent capitalism from being bad for itself.