I have been trying to figure out what happened to small businesses and when we started to allow all these semi-monopolies into our economy. Was it when Reagan dropped the tax rate, making it more appealing to be big? Or am I misremembering?
I didn't realize we have a small business problem. Did you get this from the fear mongering media?
Consolidation is a natural business phenomenon, held back by regulation. Deregulation got it's start under Nixon, but Reagan was a staunch proponent. In fact, every President since Nixon has supported deregulation, perhaps excepting Obama.
I got this as a small business owner, who is fighting an uphill battle against corporations who goes into new areas with plans to lose money for the first 3-4 years, with bargain prices with the goal of pushing out their competition.
So, no. I didn't. I got it from the fact that wherever there is a Wal-Mart, small businesses struggle.
Look, I am as red as red gets. BUT, to say that small businesses aren't going away is being silly.
Now, I have no clue as to why this is happening, but I am curious for intelligent responses/guesses.
How many billion dollar a year in revenue companies existed before deregulation? How many now? How many semi-monopolies existed before? Now?
We have a problem with this country, and silly responses are what's killing it.
I'd like to have an intelligent conversation with those who know more than me on this topic and see if there is a solution. Or, are we just doomed to all work for 2-3 corporations that own everything?
p.s. True capitalism leads to monopoly. Once a company gets big enough, the little guy can't compete anymore, so the little guy goes under. You HAVE to have regulations.
Globalization
Ah yes. The 3 evils, globalization, automation, the Internet.
Whenever anyone brings up economic sorrows, these 3 evils show up to bail out conservative (failed) policies.
The problem is... Where's the evidence that globalization, automation, and the Internet are the primary causes?
Last I checked, Canada has access to technology yet their economy is fine. Australia too. Many European nations are fine. Germany? If there's a country that would exploit the 3 evils to cut down on costs and kill small businesses it would be them. Yet... They haven't
The truth is, here in America we have let a few companies become nasty monopolies. Unchecked and unaccountable to anyone. We used to break up the monopolies of the gilded age. Now, we have reverted back to the (failed) conservative policy of monopolies being more efficient and better and all the wealth being concentrated at the top being ordained by god.
Globalization
Why does walmart thrive? Because of dirty underhanded tactics or because they provide the low cost goods that consumers want and that allow lower income people to enjoy a better quality of life?
What are some of the nasty monopolies? Name them. Describe why they are destructive and not in the best interest of their industry of the consumers they serve.
I'm not saying that I know that no nasty monopolies exist, I just see a lot of people bemoaning large business that succeeds because it's the best at giving the consumers what they want.
I don't know why it has to be political, which tends to have a way of crowding the facts out.
You're in a mature business and I would expect big business competition to out compete you. It's no different than any other retail -- grocery, hardware, auto parts... they've all been gobbled up after their industries matured.
Craft brewpubs, on the other hand, are on the leading edge of innovation and are growing at an exponential rate. Same goes for tech startups.
If you want to start a farm today you don't grow corn. You open a greenhouse selling organic foods and rarities, start an herbs farm that grows high demand essential oils, raise exotic food animals or breed the smallest dogs you possibly can. You have to go into new markets if you don't want to compete with big business.
---
I'll see if I can find the gauge of small business startups. It's been years since I looked at it and forgot what it's called.
Here's the thing, they give customers what they want, but at what cost? What happens when all that is left is Walmart? Do you think prices will remain low?
The real question is this: Are we better off now with Walmart, and will this continue in the future as Wal Mart grows?
This all reminds me of a case presented in one of the Freakonomics books, regarding sweat shops. They posit that the reason sweat shops even exist is because they are better than the alternative, that if there were better places to work with better conditions and higher pay then no on in those countries would work in sweat shops, and that maybe if we push to shut them all down, then we will lower the standard of living in those areas by removing the "best" employment opportunity many people there will ever get.
This all reminds me of a case presented in one of the Freakonomics books, regarding sweat shops. They posit that the reason sweat shops even exist is because they are better than the alternative, that if there were better places to work with better conditions and higher pay then no on in those countries would work in sweat shops, and that maybe if we push to shut them all down, then we will lower the standard of living in those areas by removing the "best" employment opportunity many people there will ever get.