It’s bad because the government is artificially manipulating market forces and prevents price discovery. Imagine you’re thinking of starting a small airline, like a Jetblue or Spirit, but investors know that if the business ever plans to exit through an acquisition, the government will intervene. Well, as an investor I’d be a lot less likely to invest.
As a result, you stifle the free market and prevent the emergence of competition. The knock on effect is less choice for the consumer and a less efficient market.
This is not a bad thing. Businesses should plan to make a money themselves and not count on being acquired. I’d say that mindset is the source of a lot of our current economic woes
Yet you completely ignore the non competition in monopolistic markets? Markets aren't pure and price discovery is stifled in a lot of ways. Arguing consolidation will help make a fairer market is ignorant if not disingenuous.
Won't someone think of the poor investors? Again, that's not who public policy should serve.
Comments
It’s bad because the government is artificially manipulating market forces and prevents price discovery. Imagine you’re thinking of starting a small airline, like a Jetblue or Spirit, but investors know that if the business ever plans to exit through an acquisition, the government will intervene. Well, as an investor I’d be a lot less likely to invest.
As a result, you stifle the free market and prevent the emergence of competition. The knock on effect is less choice for the consumer and a less efficient market.
This is not a bad thing. Businesses should plan to make a money themselves and not count on being acquired. I’d say that mindset is the source of a lot of our current economic woes
Yet you completely ignore the non competition in monopolistic markets? Markets aren't pure and price discovery is stifled in a lot of ways. Arguing consolidation will help make a fairer market is ignorant if not disingenuous.
Won't someone think of the poor investors? Again, that's not who public policy should serve.