Quote:
Originally Posted by CaramonLS
Anytime you have an essential service with very limited competition (ex. due to extremely high infrastructure costs), the government needs to keep a watchful eye on the service to make sure people aren't being taken advantage of.
We've seen it with Car insurance (in Alberta) and telecommunications (across Canada).
This is one of the reasons that Slappy's anarcho-capitalism theory couldn't function in a practical setting.
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I think what a Slappy anarcho capitalist would tell you is that government regulating the industry (for example by keeping the prices down) pretty much GUARANTEES that no new company will enter the market and create more competition. High infrastructure cost and artificaly low profit margins cements the status quo.
If you let markets be and companies start to "take advantage" it means the margins in the industry are high, which is a good incentive for a new company to enter the market, compete, drive prices down.
No?