AT&T's recent announcement on the purchase of Bell South really concerns me. It seems like our nation is reversing its stance of competition, at least in the communications business. We all know that monopolies are something to be scared about; without competition, companies can charge whatever they want and nothing can be said. With so many communication-sector businesses merging, we will soon be at the mercy of a few corporations. We need to stop letting so many companies merge together; I firmly believe that such mergers are not healthy for the consumer or the economy. Our national economy strives on competition; it encourages product improvement and keeps prices down. The government split up the "bell" phone companies years ago; do we really want to reverse that? Ever since that split, communication companies have begged for the consumer's business. That competitive spirit, however, has died in recent years. Consumer groups will certainly kick and scream on this deal, but I feel that the government will approve the deal. They seem to approve any deal that they are presented; money definitely speaks louder than economic theory.
filed under: business
True, but how can we keep companies from merging?
ReplyDeleteThe government has to approve most mergers and buyouts. They do this to prevent companies from forming monopolies; the problem is that our government rarely prevents mergers.
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