Big oil, big steel, big agriculture avoid the open marketplace. Big corporations fix prices among themselves and thus drive out of business the small entrepreneur. Also, in their conglomerate form, the huge corporations have begun to challenge the very legitimacy of the state.
About this quote
- What does it mean?
- Large corporations manipulate markets and challenge state power.
- In plain terms
- Big companies fix prices and challenge the government.
- What can you take from it?
- Large businesses can undermine competition and democracy.
Where it applies
Putting it to work
Questions to consider
- How much power should companies hold?
- Who protects the small entrepreneur?
Another view
Economies of scale sometimes benefit consumers even without competition.
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