tag:blogger.com,1999:blog-6685155377705481833.post7462278965268605971..comments2023-09-22T03:17:50.469-04:00Comments on Middle Class Political Economist: New Study Finds State Subsidies Go Overwhelmingly to Large CompaniesKenneth Thomashttp://www.blogger.com/profile/05747704671007690674noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6685155377705481833.post-11644011589770780482015-11-18T19:05:02.982-05:002015-11-18T19:05:02.982-05:00Some immutable rules
1) Regulation introduces com...Some immutable rules<br /><br />1) Regulation introduces complexity into business.<br />2) Complexity requires legal/regulatory staffs to handle<br />3) Large companies can readily handle complexity, because for them, lawyers and compliance folks are cheap and are a sunk cost. <br />4) Small companies struggle with complexity. To add a full time attorney and/or regulatory compliance officer to a small companies is cost prohibitive. <br />5) To mitigate complexity costs, small companies will band together to help share costs related to regulatory and compliance. The end result is better if two companies with similar products can merge and share the compliance burden. <br />6) The same as true on very large scales. In highly regulated and complex industries such as banking, significant money can be saved if two behemoths merge. They can effective cut their compliance and regulator costs in half. <br /><br />In the end, the bigger the gov, the more rules the government emits. The more rules they emit, the more we slide towards fewer "too big to fail" behemoths instead of many mom and pop. <br /><br />tl;dr: Big gov begets too big to fail. Anonymousnoreply@blogger.com