We need a trustbuster

The bankruptcy of the Tribune Co. is another sign of the failure of the bigger is better approach to building businesses.
That strategy depends on buying other companies rather than growing through new products and customers.
Mixing parts that don’t make sense structurally or geographically is part of what turned the banking industry into such a mess.
With the hyperconsolidation in the media industry, all highly leveraged, we are likely to see even more failures.
As mentioned in another blog post, the solution is to have serious anti-trust enforcement for the first time in decades. That would be a real support for free markets.
Breaking up huge conglomerates in energy, finance, media and manufacturing would stimulate the stock market, enhance shareholder value and save jobs.
Government should stop propping up companies and instead bust them up.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s