Wednesday, August 31, 2011

Corporate Godzilla

Deregulation of many industries in the United States was sold to us as an engine that would create competition and keep costs low and choices high for the American consumer. With the spates of big companies buying up smaller companies like the proposed AT&T/T Mobile merger that is currently being fought by the Justice Department through an anti-trust lawsuit.

We’ve instead created an economy of a select few large behemoth companies that will soon control the market on basic services meaning that they can set their own prices without anyone to challenge them. Of course this syndrome has stricken the American economy over the last few years.

We apparently have learned nothing from the financial failure and the circumstances that created banks too big too fail. Now we’ve apparently decided that creating companies too big too fail is an appropriate business model for the big multinational corporations.

Maybe next we can have the telephone industry bailout, to go along with the automotive and bank industry bailout. Mergers are also bad for the economic health of an already fragile country as two companies become one…redundant people are laid off creating even greater unemployment numbers.

Bottom line: This game of Corporate Godzilla doesn’t improve things for the consumer, but rather, creates gigantic corporate profits at the expense of consumers…yeah what else is new.

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