Comment Re:Entrepreneurs vs. mega-corps (Score 1) 761
Depends on if your goal is theoretical economic efficiency or robustness. Consider for example 9/11, the banking crisis, and hurricane Sandy. The country would be better off if there were fewer centralized institutions. That is, there is no reason that brokers and traders based outside of the US North East to not have been able to trade during Sandy. Shutting down the exchange merely ensured that the NY based bankers didn't miss out on days of trading. If there were more medium-large banks rather than fewer enormous banks, then individual institutions would cause less of a shock to the system when they get caught in their own poor decision making and fail. Not to mention the rest of the country wouldn't be playing a heads they win, tails we lose situation of having to bail out the risk-prone banks. And if more of our financial institutions were spread around the country, there would be less possibility for substantial damage caused by direct terror attacks.
An additional effect of having more medium sized institutions scattered around the country is that it allows for economic development to occur in multiple states and also provides more laboratories for innovation. There is a point where big is big enough and it better serves the interests of the populace to start branching out. Even if it is less "efficient."
TLDR: it's easier to kill all the elephants on the Serengeti than all the ants.