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Maybe the concentration of wealth is the end result of allowing too many mergers.

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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:04 PM
Original message
Maybe the concentration of wealth is the end result of allowing too many mergers.
You have to wonder if competition is also compromised.
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sadbear Donating Member (799 posts) Send PM | Profile | Ignore Wed Apr-06-11 11:05 PM
Response to Original message
1. It's the end result of 3 decades of Reaganomics.
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JVS Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:06 PM
Response to Original message
2. Or maybe it's the natural result of competition.
Competition requires multiple parties, but results in the elimination of weaker parties.
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:10 PM
Response to Reply #2
4. That is how unregulated capitalism works -- Its fatal flaw
It requires regulation to keep competition alive.

We screwed the pooch on that by lifting anti-trust laws and enforcement
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Johonny Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 10:14 AM
Response to Reply #4
20. +1
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:27 PM
Response to Reply #2
6. That's why the NFL wears helmets.
The free market regulates by death. Death isn't good for your health.
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:08 PM
Response to Original message
3. Some of have been saying that for about 30 years -- It IS the central issue
That has been a core issue from which most other ones stem from.

The concentration of wealth, erosion of the middle class, ineffectual regulations,Koch brotehrs type political takeovers often are a direct result of our absolute stupidity since the 1970's of allowing every sector of the economy to be consilidated into a few corporations through mergers, aquisitions, etc.

The chickens have come home to roost from our unwillingness to address these mergers and takeovers as they were occurring.
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:39 PM
Response to Reply #3
10. Good points.
Why is this not addressed? We keep on hearing how disparity in wealth is bad, but it seems everyone simply targets decreased taxes when the situation is a lot more complicated than that. I don't recall hearing anyone from Rachel to Katrina vanden Heuval speaking of this.
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 12:54 AM
Response to Reply #10
12. It's not spoken of enough, but there is information about it
Edited on Thu Apr-07-11 01:00 AM by Armstead
It is a concern among many progressives and others.
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NashVegas Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 10:24 AM
Response to Reply #10
22. One of the First Industries to Be Consolidated Was Broadcasting
Everyone who is aware of the effect knows about the 1996 Telecommunications Act, but less well known is the deregulation of the 1980s that started in 1984, and gradually was loosened repeatedly.

When the first people who you should have been hearing about it from were the first people to start losing their jobs ...
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shraby Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:21 PM
Response to Original message
5. Not only mergers, but after merging the more powerful
company cannibalized the other one, grabbing all the assets, laying off most of the personel then went after another company with the assets gained in order to do the same thing all over again.
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:31 PM
Response to Reply #5
7. It's geometric growth
20 companies become 10 that are much larger by multiples, then 10 become 8 that are even huger by multiples...until it becomes one giganymous company that controls it all
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applegrove Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:35 PM
Response to Original message
8. It was deregulation. By forcing corporations to compete with each other in this deregulated
fashion the mid sized corporations get gutted and taken over or destroyed. What is left is a few huge corporations and a lot of tiny ones (they don't compete with each other). Think of the telephone industry or airlines. It happens everywhere there is deregulation.
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ddeclue Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:38 PM
Response to Original message
9. umm MAYBE?
no... I know it for sure..
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:41 PM
Response to Reply #9
11. When is the last time you heard someone discuss it though?
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 08:32 AM
Response to Reply #11
17. That is a hiuge frustration -- and the Democratic leadeship is largely to blame
They should have made this an issue long ago. They still should be makinbg it an issue whenever things like the Comcast takeover, AT&T and many others.

You want to see one of the problems with healthcare, for example? Look at the number of takeovers that have occurred and how few companies really drive the heathcare economy these days.
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snot Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 01:00 AM
Response to Original message
13. The oligarchs have work every possible angle at all times. That's one of many.
Edited on Thu Apr-07-11 01:02 AM by snot
It's a lot easier to loot more people the bigger your org. is, and not just because you have less competition.
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 08:32 AM
Response to Reply #13
18. That's how they become oligarchs.
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KT2000 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 01:38 AM
Response to Original message
14. You are absolutely right
When you hear about private equity firms and holding companies - this is the process of buying up businesses to be owned by the one entity. They are then treated as financial instruments for the benefit of the parent company.

They like companies with no debt and lots of cash.
They charge the purchased company high fees for transactions with the parent company - huge fees.
They lay off the workers, move what is left overseas.
They then use the assets of the purchased company as collateral for purchasing more companies. This can put the purchased company heavily into debt. Sometimes bankruptcy follows.

This has been discussed - even in the Wall Street Journal but it is not an issue that catches on. Too bad because this issue and the mergers are indeed concentrating wealth into the hands of a few.


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Rex Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 01:40 AM
Response to Original message
15. Way too late for that kind of thinking.
Needed that in the 80s.
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 07:21 AM
Response to Reply #15
16. We have the AT&T T-Mobile merger coming up.
It can always get worse.
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Armstead Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 09:59 AM
Response to Reply #15
19. Was needed in the 80's -- needed even more now
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NashVegas Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 10:19 AM
Response to Reply #15
21. That Thinking Was Around In the 80s
No one in a position of power wanted to hear it then, anymore than they want to hear it now.
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Duer 157099 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-07-11 10:25 AM
Response to Original message
23. Ever play Monopoly?
That's how it always ends.
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