Americans detest monopolies. And rightly so. Theoretically, monopolies represent an inefficient allocation of scarce resources. The monopolist is adept at converting consumer surplus into producer surplus because fewer goods are produced at a higher price. Remember long-distance telephone services? Under Ma Bell, prices were higher and services anemic. Today the cost of long-distance telephone service is inconsequential. Americans tend to value increased competition and fear monopoly power.
The monopolist has the luxury of producing fewer goods or services while charging a higher price. In this country "uncompetitive" equates to "unAmerican." We not only desire competition; we expect it. The competitive, free market produces a surplus that society has come to expect and enjoy in the U.S.
But one man's surplus is the leftists' excess. And, to the left, excess is to be avoided. Think greed, avarice, inefficient, unfair.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
