| reply to bakorican
Re: Regulation The FACT is incumbents love a lot of red tape because it protects their business model. Look at the Cable Cos who fought tooth and nail to keep local video franchises instead of deregulated statewide franchises. AT&T and Verizon basically refused to build their networks in heavily populated New York and California until the local video franchises were abolished. The FACT is heavy regulation keeps new competition out of the marketplace.
The same goes for any other type of business. You can look at the Taxi business and the heavy fees they pay. Yellow basically has a monopoly. Another example is minimum wage laws. Why is it that you never see Walmart complaining about minimum wage laws? First of all, Walmart doesn't have a single employee that is paid minimum wage. 2nd, because Walmart is so big, they can afford to pay their employees a few bucks more every few years. Who does minimum wage affect the most? The mom & pop shop down the street. They either have to raise their prices, layoff employees, or close up shop. They don't have the luxury of competing on price and their margins are already razor thin.
So yes, additional regulation will almost always keep new competitors out of the marketplace. |
