Re:Want to rescue rural America? Bust monopolies
by coldtea on Sunday April 23, 2017 @09:19PM
(#14181358)
That's easy to answer: it doesn't in the long run (assuming it was the only player -- of course the reality is more nuanced).
But it can destroy a whole lot of value (and be the last "business" standing) in the short and mid-run.
In fact as such businesses erode the working/middle class, short and mid-term they become more enticing to it than other stores, since they are the cheaper options.
If a company causes a "race to the bottom" for jobs and wages by selling too cheaply and paying too little, then those whose wages are affected will mostly be able to shop at that place exactly. And if that company is one business upon many that are causing the same issues, then people wont even be able to single them out for blaming...
But it can destroy a whole lot of value (and be the last "business" standing) in the short and mid-run.
In fact as such businesses erode the working/middle class, short and mid-term they become more enticing to it than other stores, since they are the cheaper options.
If a company causes a "race to the bottom" for jobs and wages by selling too cheaply and paying too little, then those whose wages are affected will mostly be able to shop at that place exactly. And if that company is one business upon many that are causing the same issues, then people wont even be able to single them out for blaming...