Quote:
Originally Posted by Professor S
This is why I believe the greatest regulator in history is aggressive private competition (not monopolies). When competition is maintained, it is the individual who wins because business must concentrate on caprturing their dollar and trust, and not just growing their own power.
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Are monopolies the only place where a line should be drawn?
If a company/bank/etc grows to the point where they can destroy the country's economy if they fail.. then they need to be regulated a lot stronger imo. "Too big to fail" shouldn't exist, since it's a threat to our way of life and national security. If a company starts crossing that line, I feel that it's the government's job to protect the masses from them.
Much like a monopoly.
Though it's a very complicated situation.. The best thing to do imo is to prevent things like this from happening, because once they get too big.. it's a situation of being damned if you do something, and damned if you don't. You act on them when they're too big, and it may inspire them to take more risks knowing the government will just save them anyway.. you don't act and there's a financial meltdown. So really the only thing you can do is take steps to prevent AIGs from happening.
As for the whole politic's opinion in that article that was posted, both sides are guilty of that. This is why the Republicans lost power, and why the democrats seem to be losing it now. It's a new era.