"The great danger to the consumer is the monopoly — whether private or governmental. His most effective protection is free competition at home and free trade throughout the world. The consumer is protected from being exploited by one seller by the existence of another seller from whom he can buy and who is eager to sell to him. Alternative sources of supply protect the consumer far more effectively than all the Ralph Naders of the world." ~ Milton Friedman
Wednesday, August 08, 2012
Quote of the Day - monopoly
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You know who likes monopoly? Government. Entrepreneurs like monopoly almost as much, but since nothing exceeds like excess Government wins this one.
One other seller is never enough. Fifty is better; 100 better still. If I'm shopping for an apartment, I want to see vacancies left and right. If I'm looking for a car, I want all kinds of brands available - question: when did Detroit stop making junk and start making reliable automobiles?
Two industries that suffer from a lack of competition are the insurance industry and the banking industry. Both have institutions that are far too large; both are insufficiently regulated by government.
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