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The One Phone and Power Company, and only One Air Line! When is that coming? 

Have you ever wondered how many phone companies there were say 2 decades ago?

Have yur ever wondered how many Airline companies there were 2 decades ago?

But you got the idea.! There ae fewer banks now but bigger. Companies and banks dont fail. They just get gobbled up by the bigger ones.

This is not an accident or a fluke.

In all industries the general trend is for the economic activity to get concentrated. The resson is very simple. it is the profit motive! Each company will try to drive the margin lower and lower to drive the other out of business or have them sell out to them. This is the main reason. But there is another major reason. The federal and state regulations. Companies are going to differ in terms of administative resources avilabele to them and hence some are not goig to able to cope with just the administrative issues and hence will not be able to survie not to speak of bad decesions by their management that is bound to happen in the life of any copany.

So in general there is going to be a mounting pressure on any company just to survive. These are only some major factors impacting the survivabilty of a compay but of course there are many others. All that was ofcourse predicted by Kar Marx and other economists all along. 

So to get this injured and emasculated capitalism to work many reforms, controls, regulations and help are provide by the modern govermnment to their own businesses to continue the injured system so it keeps limping along. But the aformentioned forces will keep operatinga and governmental inteference will be needed on a continuing and increasing basis no matter what we do!

So the question arises where is this all going?

And the answer is very simple too. It will all be just one company, effectively for each major industry. For examnple there can be just one phone company, one airline, one railroad, one bank, one power company and so on. But the other smaller, specific and local industries will continue to see a variety of companies for a while.

You could argue that T moblie and ATT and other providers are diferent companie and have been for years. But you see as far as I see they are already one company. Thery are tightly regulated so that effectively the federal government owns them and they are just franchises paying their dues to the federal government and allowed some money to retain for theselves. Similarly there really is only one bank. They all operate exactly the same due to the tight control of the federal government.

So when are the one airline company, power company, bank and phone company coming? The answer: They are already here!

Ironcially, the communist centraslized systems that were detested so much are the very ones that are here but in a disguise! We fought those centrlised sytemws only to find them in our own backyard in a diferent garb!. And may be, just may be they are actually smarter and more efficeint than our capitlist system. Indeed there were Amercian economiststs that proved as a theorem that the centralised systems could be operated as a capitalist economy and even more efficietnly. Of course, to delve into that would be beyond the scope of this little article. But you can consult the references in the books written by the american economist  Wassily Leontief and his references. 

It wasn't for nothing that the Russian communist regime became a super power from a peasant eceonomy. And the chinese have taken the best of both systems and have become a super power in just 5 decades!

We better be doing the same if we want to stay there where we are! And be ready and pragmatic and not flinch over labels and epithets. We need to be scientific if we want to stay in the race! I hope you know what I mean! In other words we don't need to be so freaked out with the words 'centrlised' and 'communist' systems. Why? Because we are already there, whethere we like it or not!

We need to be scientific at all times and not predisposed for no rhime or reason!

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RH 

 

 

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