We seem to have it in our mind that "bigger is better". We Americans like things BIG. We Texans like thing REALLY BIG. Trouble is, as we're always prone to do, we take things too far.
Once this country's largest air carrier American Airlines is today in bankruptcy. Now comes word that Delta Airlines and US Airways both might make a play to buy American. We're supposed to have anti-trust laws to guarantee competition, but IMO meaningful anti-trust regulation / oversight fell by the wayside long ago. In just the last few years, Delta absorbed Northwest, United absorbed Continental, America West merged with US Air, Southwest snatched up AirTran, and pretty obviously American will be swallowed up by somebody, TBD.
The same with banking. I remember hearing experts say 20 years ago that some day there would be only a handful of mega-banks left. As there was a local community bank on every corner at the time I thought this a ridiculous prediction, but look were we are today. We're well on our way. Homebuilding: Today a handful of national homebuilders control over half the market, and their share is growing. Retailers: Think Wal Mart. 'Nuff said.
A hundred years ago we broke up "big railroad" and "big oil", rightly proclaiming it would be good for competition, and therefore for the people. I understand the principle of "economy of scale". I also understand the reality of "too big to fail" and "moral hazard".
Once again we're getting run over, and we just sit here and meekly take it. The people we've elected to look out for our interests are failing us. I guess we're getting what we deserve.
(Sorry for the boring post. I guess I read / think too much.)
S
This isn't a boring post. What you say is certainly true. The Right constantly harps about the virtues of Capitalism over Socialism (without understanding the difference between socialism and communism) but the type of capitalism that once made America great was based on the faulty notion of a continent (a world ) of unlimited resources. We know now that the world is not a system of unlimited resources but we continue to act as if it were. I wish I knew what the solution was.
ReplyDeleteVery true and very depressing.
ReplyDeleteI suspect we may have passed the tipping point.
f
Not long & boring at all! Just depressing... Wonder what we can do to fix it?
ReplyDeleteNot boring at all, Scott. At least you DO think, unlike some (most) of our politicians these days.
ReplyDeleteNo, not boring at all.
ReplyDeleteWhat I do or what you do won't make much difference, but if enough people start banking at small credit unions or local banks, it will make a difference. We can at least get some of our food at local farmers markets or choose to eat at a "mom and pop" restaurant as opposed to a national chain. We have a number of local garden shops/nurseries that I can choose over the big home improvement stores, too.
It does sound quite depressing right now, but after so many national chains of book stores going bankrupt, I believe there also will be small, locally owned book stores again filling the void.