Anti-Trust


Reading through their agenda, I conclude its the same old crap. More government control, rules, and bureaucracy. And, the results will be the very results they say they are trying to fix. For example, their first issue complains about special interests and so-called the rich getting the benefits of government largess. But, any legislation or regulatory change involves the input of special interests. In fact, Democrats welcome special interests to provide expertise in writing legislation. They are the experts and that’s why they’re involved. The Democrats invite the special interests that fit their agenda to help who then tilt the legislation to their benefit. The result is more bureaucracy and more complexity in the lives of the middle class they say they are trying to help. How much record-keeping do we already have for taxes, medical care, and on and on? Well, that is the result of the very government Democrats are pushing.

How about this:

Our plan for A Better Deal starts by creating millions of good-paying, full-time jobs by directly investing in our crumbling infrastructure and prioritizing small business and entrepreneurs, instead of giving tax breaks to special interests.

How are they going to “creating millions of good-paying, full-time jobs” Well, that crumbling infrastructure is located in states that have been run by Democrats, with an occasional Republican elected such as NY, NJ, CA, IL. The fiscal problem at the state level is that government employee pensions, public education, and Medicaid have consumed their budgets, leaving little budget dollars left for infrastructure. Having the federal government spend on infrastructure relieves the state governors, legislators, and judges of being responsible for the infrastructure in their states. No real reform here.

Next, “prioritizing small business and entrepreneurs, instead of giving tax breaks to special interests.” is funny because “small business” and “entrepreneurs”, from a political perspective, are special interests. “prioritizing” means giving special treatment to special interests. Democrats just hide it from the public by burdening firms with the rules then we get ticked off at the firms for acting the way they do.

Here’s another: “We will crack down on monopolies and the concentration of economic power that has led to higher prices for consumers, workers, and small business”. The monopolies in the economy are the federal, state, and local governments. Further, firms cannot raise their prices. The prices of products and services that are rising faster then general inflation are those with heavy government involvement such as college tuition and public education.

Another problem with their approach is that all this activity interferes with the peaceful, voluntary actions of the American people interacting with each other and others across borders. That interference tilts the playing field because that is how the Democrats view everything. In Progressivism, someone must lose for someone else to win.

Next, their plan “provides new tax incentives to employers that invest in workforce training and education and make sure the rules of the economy support companies that focus on long-term growth, rather than short-term profits.” That means more paperwork, meetings, and time taken away from concentrating resources on doing the work for the customers of the firm. As well, firms have strategies for the short, medium, and long terms. They may not be completely filled out, but that is not possible because the future is unknown. The details get filled in as more information is available and more knowledge acquired. That’s why 10 or 20 years plans are nonsense.

The funny thing is, if a firm invests for the long-term, the results might pay off in government antitrust action against it, see Amazon.com. They invested for the long-term by keeping the retail prices low to build market share. But, Democrats want congressional hearings on its proposed acquisition of Whole Foods Market Inc. So the people at Amazon.com invested for the long-term and they get rewarded with congressional hearings. That makes no sense unless of course the hearings are for show and graft. Ahhh, graft. Squeeze a firm so its employees make financial contributions to the party.

And let’s not forget the mess the Democrats created in the health insurance market with Obamacare — monthly premiums higher, deductibles, higher, insurers leaving markets. So all in all, the Democrats are pulling the same stunts they always do.

Its happening again. A firm grows from a darling, often mentioned glowingly in the media, that benefits consumers into a large corporation that is harming employees and communities, etc. If you want a lower standard of living, stagnant economy, no new jobs, and no new products then have the government try to fix the problem. It will stifle the dynamism a prosperous society needs.

Some critics call low pricing ‘predatory pricing’, supposedly to conjure scary images of a ravenous wild animal looking for its next prey.

Take this article by a writer who trades for a living.

New firms often use low prices to build market share and to get their products into more hands. They burn through investor’s cash, pay their employees with some cash and either shares of stock or products or some other way to save the cash for investing in business growth. Amazon never changed course.

People made a similar case against Walmart years ago when it was taking market share from other retailers: its harming other retailers, killing jobs, putting mom-and-pop shops out of business, etc.

Well guess what? Now Walmart is competing against Amazon and other brick-and-mortar retailers and other e-commerce sites. No government action against Walmart was needed. Indeed, it would have been harmful to consumers, its suppliers, and its employees.

The people who work at Walmart and now Amazon are doing something extraordinarily well. They have a successful strategy and business model and are executing. Don’t get in the way. Its up to others to figure out how to leap-frog over them in the marketplace. Other business models and strategies will emerge even though we cannot foresee what that will be. In fact, that success only becomes known after the fact because the growth of the firm will make the news. It will have survived the initial response by Amazon, Walmart and other competitors.

Yet we benefit from their low prices. It makes our family budgets go farther. The employees of the firms harmed by these super successful firms need to turn inward to management to demand they get their act together, or welcome outside investors to maybe buy the firm and install new management with new ideas. Its new ideas, new management, new/outside capital, new strategy, new business model that leads to dynamic growth.

Now, if Amazon is using the government to enact specific laws that benefit it, like, say, Net Neutrality, then that law or regulation should be eliminated.

If you want to help these firms, stop encouraging politicians and regulators to take sides and trying  to solve this problem. Its not a solve-able problem and government is a poor mechanism to solve problems.

UPDATE: Amazon May Be the Next Tech Giant Muscling Into Health Care. That’s what American health care needs. Smart, successful people in the private sector to figure out how to improve a highly government-controlled industry.

The $85 billion acquisition of CNN parent Time Warner by AT&T could win antitrust approval by the Justice Department in the next 60 days, sources said.

During the presidential campaign, Candidate Trump said he would not allow this merger. I’m pleased to report that common sense prevailed as President Trump needs to focus on effective management of government operations instead of trying to managing economic activities for which the future remains unknown. Draining the swamp IS way more important. Disallowing this merger would fill the swamp more by adding more rules and regulations.