Friday, April 1, 2011

Big Bed Buddies

I am always surprised at how big business is so willing to get in bed with big government.  For people who are supposedly all about free market competition, too many CEO's are very willing to have major government regulation of their industry.  The real purpose is to stifle competition, especially from smaller more nimble companies.  One need only go back at look at the behavior of companies during the Roosevelt era. The big boys supported the NRA (not the national rifle association but the national recovery act)  Big business could afford the price of regulation, the small companies could not.  Regulation became a competitive advantage is a perverse way.  We see the same thing today with the support of the over reach of the government if regulating farms.  Agribusiness can afford it.  The independents cannot.  The small organic farmers will be forced to sell at much higher prices because they cannot spread the cost of regulation the way Agribusiness can.  This jumping into the government bed by business is a form of Fascism that we do not like to admit.

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