The textbook I use for a course on Global Business, (Global Business Today by Charles Hill) extolls the virtues of Deregulation and asserts that deregulation along with privatization and protection of intellectual property rights, are necessary for a market economy. Part of the argument is that deregulation and privatization increases competition.
There are counter examples over the past thirty years to show that the behavior of companies is predatory, and that companies will try to squelch competition and tend towards monopolistic behavior unless 'regulated.' A good example is the M&A that followed the break-up of Ma Bell in 1984, when the seven Baby Bells and AT&T were created and MCI was there too. Now have reverted to Verizon and AT&T and a little of Qwest.
Some interesting stories on deregulation.
Deregulation Jolts Texas Electric Bills
Amid Turmoil, U.S. Turns Away From Decades of Deregulation
Funny thing is that the Republicans including Mr. Paulson are pushing for Regulation in the Housing and Mortgage Industries. The events to watch for surround water. According to smart analysts, and in line with the mythical 'common sense' water should be treated as a scarce commodity and should be priced much higher to dry out the demand. How will people deal with life when opening the faucet produces air, if anything, but not water? Of if a person cannot afford to pay?
Looks like for now, the Re in RePublicans stands for ReGulation.
There are counter examples over the past thirty years to show that the behavior of companies is predatory, and that companies will try to squelch competition and tend towards monopolistic behavior unless 'regulated.' A good example is the M&A that followed the break-up of Ma Bell in 1984, when the seven Baby Bells and AT&T were created and MCI was there too. Now have reverted to Verizon and AT&T and a little of Qwest.
Some interesting stories on deregulation.
Deregulation Jolts Texas Electric Bills
Amid Turmoil, U.S. Turns Away From Decades of Deregulation
Funny thing is that the Republicans including Mr. Paulson are pushing for Regulation in the Housing and Mortgage Industries. The events to watch for surround water. According to smart analysts, and in line with the mythical 'common sense' water should be treated as a scarce commodity and should be priced much higher to dry out the demand. How will people deal with life when opening the faucet produces air, if anything, but not water? Of if a person cannot afford to pay?
Looks like for now, the Re in RePublicans stands for ReGulation.
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