Comment Re:They didn't mind taking the infrastructure (Score 1) 215
For example, letting a company gain a monopoly in a particular region/industry is bad
Why?
Monopolies that help the monopoly holder sustain unnaturally high profits are unsustainable without coercion, and in western society, coercion is done by governments.
IOW: if there is a monopoly out there that is over charging you and reaping huge profits, they are not long for the world unless they have a government propping them up somehow.
Not necessarily. Let's say cost of entry to a particular industry is high for reasons completely outside government control. Let's say a company has grown so large that they have enough resources to buy out any smaller company that starts up. If the cost of entry is high enough, the rate at which new startups happen is fairly slow then there could be more money made via having a monopoly than the cost of buying all the competition. In such a scenario, the monopoly holder can then charge whatever they want, offer whatever level of service they want, and there is NOTHING anyone legally can do to stop them. All done without coercion.
Additionally, you ignore human nature. You say that monopolies that form naturally are not long for this world. Hogwash. Why? Because if a company has gained that kind of power, however short the tenure of that power would have been naturally, once attained they WILL use that power to purchase laws which will then enforce their control. Letting it get to that point in the first place where they would be in a position to have that level of influence is the problem; the entire reason for anti-trust laws. Anti-trust laws are about making it so it is difficult to attain a position of power that gives enough legal influence to enforce legislation and regulation which is counter to the public interest and the market interest.
If it was truly an issue of the profits being too high, a different market place entrant could provide the same or similar product/service, at the same or worse efficiency, and at a cheaper consumer price, with the difference being taken out of the healthy profit margin.
If there is a monopoly or near-monopoly without government collusion, then there is no problem, because it is by definition not fleecing customers [nothing would protect its margins from an upstart who could safetly cut into them].
Sometimes a particular company just does a really good job and gets a lot of market share. That's not a bad thing.
As explained, not necessarily true. The large company could potentially purchase all market entrants to prevent competition. If the cost of entry is great enough, the frequency and number of entrants will be low enough to make this economically feasible to the larger company.
Additionally, there are legal ways in which a large company can potentially artificially increase the cost of entry without use of government power. For example, if cost of entry to an industry requires the use of a limited resource of which the larger company has already cornered the market on, then the larger company can inflate the price of that resource to a level that makes cost of entry to the market too high to be economically feasible. Worse still they can simply refuse to sell that resource to parties interested in entering the marketplace in that other industry making entry flat out impossible.
It is true that such behavior, when let to run rampant will eventually lead to the demise of those companies; it will only do so when there is a world-wide economic crash. Said crash would be a direct result of this behavior. We know this happens because there is a history of this happening about once every 20 years during the 19th century. There were very minimal business regulations of the time, and the results were disastrous.
Ultimately the reason the free market doesn't work is the same reason true communism doesn't work. Not because the idea is unsound, but because it simply can't exist in a world run by corruptible human beings.